{"id":12072,"date":"2020-09-02T13:07:02","date_gmt":"2020-09-02T13:07:02","guid":{"rendered":"http:\/\/itatonline.org\/digest\/pcit-v-gaursons-realty-pvt-ltd-2020422-itr-123-104-cch-0733-delhi-hc\/"},"modified":"2021-06-04T11:55:41","modified_gmt":"2021-06-04T06:25:41","slug":"pcit-v-gaursons-realty-pvt-ltd-2020422-itr-123-104-cch-0733-delhi-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/pcit-v-gaursons-realty-pvt-ltd-2020422-itr-123-104-cch-0733-delhi-hc\/","title":{"rendered":"PCIT v .Gaursons Realty Pvt. Ltd. (2020)422 ITR 123 \/104 CCH 0733\/ 274 Taxman 512  (Delhi) (HC)"},"content":{"rendered":"<p>Dismissing the appeal of the revenue the\u00a0 court held that \u00a0the Tribunal had rightly allowed the deduction claimed by the assessee under section\u00a036(1)(iii)\u00a0. By its investment in the share capital of GR, the assessee was to acquire a controlling stake in GR which was also engaged in the business of real estate development and therefore, there was a direct nexus between the expenditure incurred and the purpose of business. Followed Hero Cycles (P) Ltd. v. CIT<u>\u00a0<\/u><a href=\"http:\/\/www.taxlawsonline.com\/%5b2015%5d%20379%20ITR%200347\">[2015] 379 ITR 347<\/a>\u00a0<u>(<\/u>SC) and S. A. Builders Ltd. v. CIT (A)\u00a0<a href=\"http:\/\/www.taxlawsonline.com\/%5b2007%5d%20288%20ITR%200001\">[2007] 288 ITR 1<\/a>\u00a0(SC)\u00a0\u00a0 . As regards other transactions of \u00a0the interest-free advance made by the assessee, the Tribunal had \u00a0given finding that the\u00a0 assessee had sufficient interest free funds .( AY.2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 36(1)(iii) :Interest on borrowed capital \u2013 Borrowed from banks and advanced to sister concern- Commercial expediency \u2013 Sufficient interest free fund was available \u2013 Deletion of disallowance is held to be justified .<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12072","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-38I","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12072"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12072\/revisions"}],"predecessor-version":[{"id":18910,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12072\/revisions\/18910"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}