Sunday, March 16, 2014

The High Court of Bombay has held that: Section 36(1)(iii) - Interest on borrowed capital :-

There is no requirement under section 36(1)(iii) that assessee should have separate account in respect of non-interest bearing funds from that of interest bearing funds to establish that investments have been made out of its own funds i.e. non-interest bearing funds.
Section 37(1) - Business expenditure:- In view of consistent practice followed by assessee, Tribunal rightly allowed its claim for prior period expenses which were crystallized during relevant assessment year on receipt of bills even though assessee was following mercantile system of accounting.

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