Interest Borrowed for Acquiring another Co

This query is : Open

Dhvani Kamani (Querist)
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18 January 2021 Interest Paid on Borrowed Fund for Acquiring Controlling Interest in another Company allowable as Business Expenditure. The expenses are in connection with loans taken for Bank for the acquisition of a Company.
Please assist the interest on loan and finance expenditure on account of the loan could have been allowed as business expenditure or not .
I have referred judgement PCIT v. Concentrix Services (I) (P.) Ltd. (2019) 267 Taxman 625 (Bom.)(HC) in which they allowed interest on loan and finance expenditure on account loan as business expenditure on the ground that the Respondent is not in the business of investment of shares but in the business of Information Technology enabled Services, BPO and Call Centres.

Please guide whether we taken a loan for purchasing 100% shares of another company and after acquisition that company becomes 100% subsidiary company .

Loan taken for that acquisition is allowed and the interest on loan and finance expenditure on account of the loan could have been allowed as business expenditure or not .

Regards
CA Dhvani Kamani