Assessee, a banking company, claimed deduction for broken period interest paid on securities purchased during previous year.Assessing Officer disallowed same by treating same as capital in nature. High Court held that the assessee had been holding securities as stock-in-trade hence interest paid on such securities would be an allowable deduction. SLP filed by revenue is dismissed. (AY. 1998-99)
CIT v. State Bank of India (2024) 297 Taxman 6/ 463 ITR 701 (SC) Editorial: CIT v. State Bank of India(2023) 292 Taxman 38/ 445 ITR 122 (Telangana)(HC)
S. 37(1) : Business expenditure-Interest on securities-Securities held as stock in trade-Order of High Court is affirmed-SLP of Revenue is dismissed.[S. 28(i), Art. 136]