2012 (9) TMI 519 - SCH - Income Tax

Whether interest paid in respect of borrowings for acquisition of capital assets not put to use in the concerned financial year can be permitted as allowable deduction under section 36(1)(iii) of the Income-tax Act 1961? - Held that - Yes as decided in Dy. CIT v. Core Health Care Ltd. 2008 (2) TMI 8 - SUPREME COURT OF INDIA - in favour of assessee.

Summary

The Supreme Court granted leave in a case where the question was whether interest paid for acquiring capital assets not put to use in the financial year can be allowed as a deduction under section 36(1)(iii) of the Income-tax Act, 1961. The court ruled in favor of the assessee based on a previous case law and allowed the appeals with no costs. (Case citation: 2012 (9) TMI 519 - SC)