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Section 36 of Income-Tax Act, 1961

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Section 36 of Income-Tax Act, 1961 deals with Other deductions

Recent Cases / Related Cases / Case Laws

  • January 2012: In view of amendment made to section 36(1)(vii), obligation to prove that a debt is bad debt and producing evidence for same is not required - [2012] 17 LNIN 165 (Karnataka)
  • December 2011: Where assessee, engaged in business of owning, running and managing hotels, borrowed money and invested same in it subsidiary company with a view to acquire control of a new hotel, it was to be held that interest paid on borrowed capital was allowable under section 36(1)(iii) - [2011] 16 LNIN 335 (Delhi)
  • December 2011: [2011] 16 LNIN 304 (Mumbai - Trib.): Deduction under section 36(1)(viii) is to be allowed to Government banks
  • December 2011: [2011] 16 LNIN 251 (Delhi): Dividend received in respect of redeemable preference shares does not amount to profits derived from providing long term finance within meaning of section 36(1)(viii), read with clause (h) of Explanation to said section
  • April 2011: HC / ITAT: A Scheduled Bank is not a financial corporation falling under section 36(1)(viii) during assessment year 2004-05.
    • Even though Scheduled Banks and financial corporations engaged in business of analogous character, the Banking Companies are not generally referred as financial corporations [Section 36(1)(viii) of the Income-tax Act, 1961 - Financial Corporation, reserve created by]
    • The Legislature obviously did not want to extend the benefit of deduction under section 36(1)(viii) to Schedules Banks until they amended the provisions by Finance Act, 2006 with effect from 1.4.2007 covering Banking Companies also for the purpose of deduction provided therein; therefore, the provisions of section 36(1)(viii) until it was amended by Finance Act, 2006 did not include Banking Companies governed by the provisions of the Banking Regulation Act - [2011] 10-189 (Ker.)

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