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Whether the Tribunal was correct in holding that the 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 ?

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Sec. 28(i) & 37(1) of Income-tax Act, 1961 - Business expenditure - The issue, which arises for our consideration in these appeals, is about taxability of interest paid by the assessee commonly known as Broken Period Interest. The 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 of the Act 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 under the Act. - CIT V/s STATE BANK OF INDIA (SBI) - [2020] 428 ITR 316 (KARN)