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TMI Blog2010 (2) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... essee from claiming the entire interest paid as the part of the cost of the acquisition of the shares allotted as the money borrowed has direct nexus with the acquisition of the shares. Decided in favour of assessee. - ITA No.1861/Mum/2009 - - - Dated:- 22-2-2010 - SHRI R.S.SYAL, SHRI R.S.PADVEKAR, JJ. Appellant by : Shri Dharmesh Shah Respondent by : S/Shri S.S.Rana/Peeyush Jain (D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Punjab National Bank through Public Issue.For that purpose,the finance was arranged from M/s.Double Dot Finance Ltd.The assessee has had to pay the interest amounting to Rs.2,63,013/- at the rate of 15% p.a.on the amount of loan borrowed of Rs.4 crores for the period of 15 days.The assessee was allotted 4635 shares of Punjab National Bank and the assessee has capitalized the interest paid to M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as cost of acquisition of the shares.The assessee carried the issue before the Ld CIT(A) and the Ld CIT(A) accepted the plea of the assessee that the interest paid by the assessee,on the borrowed money for the purpose of acquiring the shares as the part of the cost of the acquisition of the shares.However,the Ld CIT(A) did not allow the entire claim of the assessee but allowed the claim party to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money refunded by both the company were paid back to the financiers. The controversy is whether the entire interest on the borrowed money paid by the assessee can be allowed u/s.48 treating the same as the cost of acquisition. The argument of the Ld Counsel is that funds were borrowed with sole intention for acquiring the shares and that is nowhere disputed by the A.O.and as allotment of the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a part of cost of acquisition of the shares and allow the same as a deduction.Accordingly,Ground No.1 is allowed. 6 The Ld Counsel submitted that he is not pressing the Ground No.2.As the Ground No.2 is not pressed, the same is dismissed as not pressed. 7. In the result, assessee s appeal is partly allowed. Order pronounced in the open court on 22nd day of February, 2010. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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