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Interest on borrowed capital SLP granted against High Courts ruling that where assessee builder advanced borrowed amount to its sister concern for purpose of acquiring a portion of property in project

SUPREME COURT OF INDIA

 

SPECIAL LEAVE TO APPEAL (C) NOS. 515-517 OF 2016

 

Embassy Development Corporation........................................................Appellant.
v.
Assistant Commissioner of Income-tax ..................................................Respondent

 

ADARSH KUMAR GOEL AND UDAY UMESH LALIT, JJ.

 
Date :JANUARY  20, 2017 
 
Appearances

Pritesh Kapur, Senthil Jagadeesan, Govind Manoharan and Ms. Shruti Iyer, Advs. for the Petitioner. 
Maninder Singh, ASG, Vikas Singh Jangra, T.M. Singh and Mrs. Anil Katiyar, Advs. for the Respondent.


Section 36(1)(iii) of the Income Tax Act, 1961 — Business Expenditure — Interest on borrowed capital — SLP granted against High Court's ruling that where assessee builder advanced borrowed amount to its sister concern for purpose of acquiring a portion of property in project proposed to be developed by its sister concern and said amount was not utilised for said project but it was used for some other project, assessee was not entitled for deduction of interest paid on borrowed amount — Embassy Development Corporation vs. Assistant Commissioner of Income Tax.


ORDER


1. Heard.

2. Leave granted.

 

[2017] 245 TAXMAN 207 (SC)

 
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