Supreme Court of India

L.K. TRUST versus COMMISSIONER OF INCOME TAX & ANR.

2026 INSC 474

Case number
CIVIL APPEAL No. 527/2012
Judgment date
2026-05-07
Petitioner / appellant
L.K. TRUST
Respondent
COMMISSIONER OF INCOME TAX & ANR.
Neutral citation
2026 INSC 474
Other citation
[2026] 5 S.C.R. 567
CNR
ESCR010001582026
Bench / judges
J.B. PARDIWALA, UJJAL BHUYAN
Author judge
Not available
Bench size
2 Judges
Disposal nature
Appeal(s) allowed
Judgment year
2026

Issue for consideration

Issue arose whether the appellant-assessee is entitled to a deduction of Rs.21,74,234/- being the interest paid by it in respect of the loan availed from the Corporation Bank u/s.36(1)(iii) of the Income Tax Act 1961.

Headnote excerpt

Income Tax Act 1961 – interest paid in respect of capital borrowed for the purposes of business or profession – Assessee, if eligible for deduction of interest paid to the bank u/s.36(1)(iii) – Assessee borrowed loan from the Bank and paid interest in order to invest the same in its share business –

Full Judgement details :

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