Interest on Loans for Share Purchases to Expand Business Allowable: Gujarat HC

B Nanji & Co. Vs DCIT (Gujarat High Court) Gujarat High Court dealt with multiple tax appeals filed by B Nanji & Co. against a common judgment of the Income Tax Appellate Tribunal regarding assessment years 1996-97 and 1997-98. The case centered around whether the assessee could claim interest deductions under Section 36(1)(iii) of the Income Tax Act for funds borrowed to invest in the shares of International Housing Finance Corporation Ltd. (IHFC). B Nanji & Co., a real estate business, had established IHFC to ensure ready access to funds for real estate projects. They subscribed ...