Being an investment company, interest on loan used for investment in jointly controlled entity allowed as revenue expenditure

Brief of the Case ITAT Delhi held In the case of ITO vs. M/s. First American Securities Pvt. Ltd. that the interest expenditure is to be treated as revenue in nature because the assessee is an investment company. It is very specifically mentioned in the objects of the MOU that assessee company is to make strategic investment in the business entities and accordingly, it has made strategic investment in unquoted shares of jointly controlled entities. Therefore, we find that the interest expenditure incurred by the assessee is for business purposes. Hence, there was no basis for treating the inte...