Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1777 - ITAT MUMBAIAddition of broken period interest expenditure - allowable revenue expenditure u/s 37 - HELD THAT:- The Hon’ble Bombay High Court in CIT Vs. HDFC Bank Ltd [2014 (8) TMI 119 - BOMBAY HIGH COURT] while relying on the ratio laid down in its earlier decision in American Express International Banking Corporation Vs. CIT [2002 (9) TMI 96 - BOMBAY HIGH COURT] which in turn, had distinguished the ratio laid down by the Hon’ble Supreme Court in Vijaya Bank Vs. CIT [1990 (9) TMI 5 - SUPREME COURT] and CIT Vs. Bank of Rajasthan Ltd [2008 (3) TMI 325 - RAJASTHAN HIGH COURT] and had held that broken period interest is allowable as deduction. Following the same parity of reasoning, we hold that the assessee is entitled to the claim of broken period interest. As in case of CIT vs. Citi Bank [2008 (8) TMI 766 - SUPREME COURT] held that broken period interest expenses are allowable expenses. We have noted that the order passed by ld. CIT(A) is based on the decision of Hon’ble Bombay High Court in American Express International Banking Corporation (supra) and the decision of Hon’ble Supreme Court in Citi Bank (supra). The decision relied by ld. DR was distinguished by Hon’ble Apex Court in Citi Bank (supra). No other contrary decision is brought to our notice. Thus, no infirmity in the order passed by ld. CIT(A) in deleting the disallowance of broken period expenses. In the result, grounds of appeal raised by Revenue are dismissed.
|