Held that interest paid for the broken period on purchase of Government securities is allowable as deduction. Followed CIT v. Citi Bank N.A (No. 1 (2024) 469 ITR 273 (SC) (AY.1985-86, 1986-87)
CIT v. Standard Chartered Bank (2024)469 ITR 408 (SC) Editorial : CIT v. Standard Chartered Bank, ITR No. 87 of 1996 dt 16-7-2003 (Ker)(HC)
S. 37(1) : Business expenditure-Banks-Government Securities-Purchased after interest date-Interest paid for broken period is not part of purchase price-Allowable as revenue expenditure.
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