Shanti Prime Publication Pvt. Ltd.
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) -  428 ITR 316 (KARN)