Interest paid on borrowing for carrying out business of investing in shares is allowable expenditure

RMZ Hotels Private Limited Vs NFAC Delhi (ITAT Bangalore) ITAT Bangalore held that business of the assessee is to invest in shares and that the borrowing was for the purpose of business. Accordingly, interest paid on such borrowing is allowable under section 36(1)(iii) of the Income Tax Act. Facts- The assessee has advanced a sum of Rs.41 crores towards purchase of shares. AO questioned the sources of Rs. 41 crores. The assessee stated that it had taken loan from M/s. Millenia Realtors Pvt. Ltd. The assessee paid an interest of Rs.99,02,829/-. The said amount has been given towards purchase of...