2019 (2) TMI 2019 - SC - Income Tax

Interest on the borrowed money - funds were utilized by the assessee to subscribe to the equity capital of the subsidiary company - subsidiary company used the said funds for the purpose of acquiring the Centaur Hotel, Juhu Beach, Mumbai, which is now functioning as The Tulip Star, Mumbai - tribunal has also held that this expenditure would be allowed even under section 57(iii) - As held by HC though there may be some controversy as to whether the aforesaid expenditure is allowable under section 57(iii) of the Act or not, we have no doubt, in our mind, that the expenditure incurred under the aforesaid circumstances would be treated as expenditure incurred for business purposes and was thus allowable under section 36 - HELD THAT - Special Leave Petitions are dismissed for non-prosecution.