Dismissing the appeal of the revenue the Court held that Tribunal found that assessee had made investment which would yield income in form of dividend and therefore, investment was made for purpose of earning income. Accordingly the expenditure incurred for earning such income had to be allowed. (AY. 2008 -09)
PCIT v. Premier Finance & Trading Co. Ltd. (2019) 262 Taxman 341 (Bom.)(HC)
S. 36(1)(iii) : Interest on borrowed capital-Investment in share capital of sister concern, with a view to earn dividend income-Expenditure incurred is held to be allowable as deduction .