Accrued Interest in Loan Acquisition is Purchase Consideration, No TDS: ITAT Mumbai

DCIT Vs Piramal Enterprises Limited (ITAT Mumbai) Accrued Interest in Loan Sale is Purchase Consideration, Not Interest – No Borrower-Lender Relationship, No TDS: ITAT Mumbai Mumbai ITAT has held that amounts paid for acquisition of loan portfolios including ICDs, NCDs & term loans, comprising principal along with accrued interest, are in the nature of purchase consideration & not “interest” liable for deduction of tax at source u/s 193/194A. Assessee, a registered NBFC, had acquired loans from Piramal Enterprises Ltd. & Piramal Capital & Housing Finance Ltd. at their car...