L.K. TRUST versus COMMISSIONER OF INCOME TAX & ANR.

Case summary from SCR

Issue for Consideration Issue arose whether the appellant-assessee is entitled to a deduction of Rs.21,74,234/- being the interest paid by it in respect of the loan availed from the Corporation Bank u/s.36(1)(iii) of the Income Tax Act 1961. Headnotes† Income Tax Act 1961 – interest paid in respect of capital borrowed for the purposes of business or profession – Assessee, if eligible for deduction of interest paid to the bank u/s.36(1)(iii) – Assessee borrowed loan from the Bank and paid interest in order to invest the same in its share business –