Interest on Loans to invest in Subsidiary Company Shares is Deductible: Bombay HC

PCIT Vs Videocon Industries Ltd. & Anr (Bombay High Court) Introduction: The case of PCIT vs Videocon Industries Ltd. & Anr before the Bombay High Court delves into the allowability of interest paid on loans used to invest in shares of a subsidiary. The court’s decision sheds light on the treatment of such expenditure under the Income Tax Act. Detailed Analysis: The appeal before the court raised two substantial questions of law concerning the disallowance of interest expenses and upfront fees paid by the assessee. The Revenue argued that the funds were diverted for non-business ...