Once the three conditions pointed out by the Supreme Court in the judgment of Madhav Prasad Jatia v. CIT [1979] 118 ITR 200 are satisfied, the assessee would be entitled to deductions in respect of the interest and charges paid on the loans; the matter would be different only in a case where after borrowing the funds from the bank, the assessee utilizes those very funds by giving interest free loans to others.
CASE LAWS DETAILS
DECIDED BY: HIGH COURT OF DELHI,
IN THE CASE OF: CIT Vs. Gautam Motors, APPEAL NO: ITA No. 496 of 2006, DECIDED ON July 19, 2010
