Hon’ble Supreme Court upheld the decision of the Hon’ble High Court by observing that securities were purchased by the assessee a banking company as stock-in-trade. Hence, the broken period interest paid on such purchase is allowable as a deduction and does not require capitalisation. SLP dismissed on account of delay 958 days as well as on merits.
CIT v. State Bank of India (2026) 309 Taxman 86 (SC) Editorial : CIT v. State Bank of India (2025) 170 taxmann.com 719 (Telengana)(HC)
S. 37(1): Business expenditure-Broken period interest on purchase of securities-Securities held as stock-in-trade-Interest paid for broken period was allowable as deduction-SLP delay of 959 days-SLP dismissed on account of delay as well as on merits. [Art . 136]
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