Interest Paid = Deductible When Obligation Exists – ITAT Allows Claim on Capital Bond Arrangement

Hutchinson & Co. (India) Pvt. Ltd. Vs ITO (ITAT Bangalore) Interest Paid = Deductible When Obligation Exists – ITAT Allows Claim on Capital Bond Arrangement In Hutchinson & Co. (India) Pvt. Ltd., the Bangalore ITAT dealt with allowability of interest paid to Prestige Holiday Resorts Co. Ltd. under a capital bond arrangement, after the matter was remanded by the Karnataka High Court. The Revenue had disallowed the claim on the ground that: There was no obligation to pay interest, and Hence, the payment was not incurred wholly and exclusively for business. However, on detailed examin...