Supreme Court · 2015 INSC 832 · Decided 5 November 2015
Hero Cycles (P) LTD. v. Commissioner of Income Tax (Central), Ludhiana
- Court
- Supreme Court of India
- Citation
- 2015 INSC 832 · [2015] 12 S.C.R. 55
- Case number
- CIVIL APPEAL No. 514/2008
- Decided
- 5 November 2015
- Bench
- A.K. SIKRI, R.F. NARIMAN (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 31(1)(iii)
Headnote
A B Income Tax Act, 1961 - s. 31(1)(iii) - Deduction of c interest paid on borrowed sums from Banks - Claim for, by the assessee - Denied by Revenue - On the grounds that the money borrowed on which interest was paid was not for business purpose and that the advances given by assessee-. Directors at the rate of 10% interest being D much lower than the interest paid to the Banks (i.e.@ 18%), the same cannot be treated for the purposes of business of the assessee - Assessing Officer disallowed the claim for deduction-Appellate Authority as well as appellate Tribunal held that the
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