Sec. 28(i) & 37(1) of Income-tax Act, 1961— Business expenditure—Broken period interest paid to the sellers of securities claimed to be allowable as deduction from business income and not income from other sources.

Facts: Whether Tribunal was correct in holding that broken period interest paid by the assessee should not be added to the cost of the securities purchased by including the interest in the closing stock of the securities, when the expenditure towards interest was towards the capital outlay ?

Held, that assessee bank ever since, its inception has been offering the Broken Period Interest income earned from the sale of securities as business income under s. 28 and not as income under the head 'income from other sources'. Therefore, the broken period interest paid to the sellers of securities was claimed as allowable deduction from its business income. - CIT V/s STATE BANK OF INDIA (SBI) - [2020] 29 ITCD Online 015 (KARN)