SC allows Interest Deduction on Borrowed Capital; Cash Accounting Excludes Matching Principle

CIT Vs Shriram Investments (Supreme Court of India) The Supreme Court of India dismissed the Revenue’s Special Leave Petition challenging the Madras High Court’s judgment, which upheld the orders of the Income Tax Appellate Tribunal (ITAT) regarding the assessment year 2015-16. The Revenue had contested the deletion of disallowances made under Section 36(1)(iii) of the Income Tax Act, particularly concerning interest-bearing loans advanced by the assessee, an investment company, to its associated concerns without charging interest. The Revenue also raised questions regarding the applicabil...