Rectification of mistake remains limited to self-evident record errors, preventing merits review through miscellaneous applications and preserving fin...
Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
Helicopter charter classification requires effective control analysis, while territorial performance, reasoned credit orders and wilful suppression de...
Specified fund definition expands PAN exemption eligibility for registered alternative investment funds and qualifying International Financial Service...
Tax exemption for specified legal-services authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and...
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.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4811 
Join Channel 
