Windmill commissioning evidence supported higher depreciation where grid connection and electricity generation proved operational use before the relev...
Pharmaceutical promotion and transfer-pricing comparability principles limited disallowances, while uncorroborated search allegations and unsupported ...
Business expenditure substantiation supports scrap credits, statutory payments and expense claims, while depreciation requires proof of actual busines...
Section 36(1)(iii) allows deduction of interest where the borrowing, the interest payment and use of capital for business are established, and the statutory phrase "for the purposes of business" is of wide import. The Court applied the test of commercial expediency, holding that interest need not be disallowed merely because borrowed funds were routed through a subsidiary or group concern, and it was not necessary that the advance should directly earn profits for the assessee. Accepting the Tribunal's view on the composite nature of the business and the business purpose of the borrowing, the Court held the interest on the bank loan to be allowable and set aside the High Court's contrary decision.
Section 36(1)(iii) allows deduction of interest where the borrowing, the interest payment and use of capital for business are established, and the statutory phrase "for the purposes of business" is of wide import. The Court applied the test of commercial expediency, holding that interest need not be disallowed merely because borrowed funds were routed through a subsidiary or group concern, and it was not necessary that the advance should directly earn profits for the assessee. Accepting the Tribunal's view on the composite nature of the business and the business purpose of the borrowing, the Court held the interest on the bank loan to be allowable and set aside the High Court's contrary decision.
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