Assessee company had borrowed interest bearing funds for setting a SEZ\u00a0 Assessee-company had engaged services of a company to do job of intermediary between assessee, land owners and relevant government bodies to negotiate purchase price of land, make payments and complete formalities.\u00a0 Assessee paid Rs. 290 crores to it. As said company could not fulfil requirements, it paid back a sum as compensation over and above payment made by assessee. The\u00a0 Assessing Officer\u00a0 held that difference between income generated and interest paid was not allowable. On appeal the\u00a0 and Commissioner (Appeals) and\u00a0 Tribunal held that since interest were paid on funds which were utilised for business purpose only, entire interest expenses had to be allowed in toto under section 36(1)(iii) as well as under section 37(1) as being for purpose of business. On appeal by the Revenue, the High Court affirmed the order of the Tribunal. (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 36(1)(iii) : Interest on borrowed capital-, Entire interest expenses had to be allowed in toto under section 36(1)(iii) as well as under section 37(1) as being for purpose of business-Order of Tribunal allowing the interest is affirmed. [S. 37(1) 260A] <\/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":[21],"tags":[],"class_list":["post-38498","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-a0W","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38498","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=38498"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38498\/revisions"}],"predecessor-version":[{"id":38499,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38498\/revisions\/38499"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=38498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=38498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=38498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}