DCIT v. BPTP Ltd. (2024) 204 ITD 41 (Delhi) (Trib.)

S. 36(1)(iii) :Interest on borrowed capital-Interest-Banks and Public Financial institutions-Treatment in books of account-Allowable as deduction in the year in which the payment is made irrespective of its treatment in books of account. [S. 43B, 145]

Held that when the  borrowed amounts from Banks and Public Financial institutions which are used for the purpose of business, the   interest paid would be allowable as deduction as per provisions of section 36(1)(iii) read with provisions of section 43B in year in which payment was made irrespective of its treatment in books of account. (AY. 2016-17)

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