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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