Dismissing the appeal of the revenue the Court held that order of Tribunal allowing the claim for deduction of interest on borrowed fund when the same is utilised to give interest free loan/share application money to subsidiary companies is held to be allowable as deduction. Followed S.A. Builders Ltd. v. CIT (2007) 228 ITR 1 (SC). (AY. 2008-09)
PCIT v. E City Investments and Holdings Company (P.) Ltd. (2020) 117 taxmann.com 123 (Bom.)(HC) Editorial : SLP of revenue is dismissed, PCIT v. E City Investments And Holdings Company (P.) Ltd. (2020) 272 Taxman 90 (SC)
S. 36(1)(iii) : Interest on borrowed capital-Loan given to sister concern-Without charging interest-Disallowance of interest was held to be not valid.