Interest on Borrowings to Retain Business Control Allowable U/s 36(1)(iii): Delhi HC

Eicher Goodearth Ltd. Vs CIT (Delhi High Court) Interest on Strategic Borrowings Allowable Under Section 36(1)(iii) if Used to Retain Business Control: Delhi HC The Delhi High Court considered whether interest expenditure incurred on borrowings used to subscribe to a rights issue of shares could be allowed as business expenditure under Section 36(1)(iii) of the Income-tax Act, 1961 or only under Section 57. The Court noted that the issue regarding deduction under Section 80M stood concluded by the Supreme Court, requiring deduction on the basis of net dividend under Section 80M read with Secti...