https://www.taxtmi.com/caselaws?id=62285 The ITAT Cochin partially allowed the appeal by the assessee, directing the AO to restrict the disallowance of interest to Rs. 5,45,000 for the assessment year 1987-88. The Tribunal found that while some funds were used for legitimate business transactions, others were diverted for non-business purposes to a sister-concern. This decision emphasizes the importance of establishing the purpose of fund utilization for determining the allowability of interest on borrowed funds in tax assessments. en-us Thu, 08 Jan 1998 00:00:00 +0530 Wed, 19 Jan 2011 10:56:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62285 The ITAT Cochin partially allowed the appeal by the assessee, directing the AO to restrict the disallowance of interest to Rs. 5,45,000 for the assessment year 1987-88. The Tribunal found that while some funds were used for legitimate business transactions, others were diverted for non-business purposes to a sister-concern. This decision emphasizes the importance of establishing the purpose of fund utilization for determining the allowability of interest on borrowed funds in tax assessments. Case-Laws Income Tax Thu, 08 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62285