Interest for broken period on securities held as stock is allowable as deduction

CIT Vs State Bank of Hyderabad (Telangana High Court) Telangana High Court held that interest paid for broken period on securities held as stock-in-trade is allowable as deduction. Accordingly, petition filed by revenue dismissed and question answered in favour of respondent-assessee. Facts- Respondent is an assessee under the Act having the status of a banking company. In the course of the assessment proceedings, assessee claimed that it had paid an amount of Rs.38,59,13,447.00 as broken period interest on purchase of securities. AO vide the assessment order dated 26.02.1999 passed under Sect...