16 November 2012
Dear sir , If any assesses borrowed money from bank for paying income tax.interest paid on this loan shall be allowed in profit & loss or not.
16 November 2012
For accounting purpose, such interest can be debited in profit and loss account. But for income tax purpose, that interest will not be considered as business expenditure .
Citation :- East India Pharmaceutical Works case reported in 224 ITR 627.
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