IS INTEREST PAID TO BANK RS. 15000 IN CONNECTION WITH OVERDRAFT OBTAINED FOR PAYING DIVIDEND IS ADMISSIBLE EXPENSE OR NOT
IS INTEREST PAID TO BANK RS. 15000 IN CONNECTION WITH OVERDRAFT OBTAINED FOR PAYING DIVIDEND IS ADMISSIBLE EXPENSE OR NOT
Interest on borrowals for payment of dividend is deductible - Interest paid on moneys borrowed, which are utilised for payment of dividend to the shareholders of a company, is entitled to deduction under section 36(1)(iii) - Kesar Sugar Works Ltd. v. CIT [1997] 140 CTR (Bom.) 431.
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