Hon’ble Telangana High Court has held that the assessee, a banking company, had been holding its securities all along as stock-in-trade, and therefore, interest paid on such securities would be allowed as revenue expenditure. (AY. 1998-99)
CIT v. State Bank of Hyderabad (2023) 455 ITR 122/ 292 Taxman 38/ 331 CTR 84/ 222 DTR 345 (Telangana)(HC)/Editorial : SLP of Revenue is dismissed , CIT v. State Bank of India (2024) 297 Taxman 6 (SC)
S. 37(1) : Business expenditure- capital or revenue-Interest paid on securities held as stock in trade-Allowable as revenue expenditure. [S. 28(i)]