Dismissing the appeal of the Revenue the Court held that interest paid by assessee was allowed as expenditure for assessment years 2005-06 and 2011-12. Since loan availed on account of stated commercial expendiency had received approval of revenue when loan was first taken, assessee was not required to demonstrate commercial expendiency in each year. Decision of Tribunal is affirmed. (AY. 2015-16)
PCIT v. N.S. Software (2023) 294 Taxman 403 (Delhi)(HC)
S. 36(1)(iii) : Interest on borrowed capital-Interest free advances to partners-Commercial Expendiency-Assessee was not required to demonstrate commercial expediency in each year-Order of Tribunal is affirmed. [S. 37(1)]