https://www.taxtmi.com/caselaws?id=66968 The court upheld the decision of the Appellate Authority Commissioner (AAC) to allow the deduction of interest paid by firms to the bank for obtaining business loans under section 36(iii) of the IT Act. The court rejected the Department's argument that pledging fixed deposits transferred ownership to the firms, emphasizing that the interest paid on loans for business purposes was rightly allowed. As the loans were specifically utilized for business, the interest paid to the banks was considered an allowable deduction. Consequently, all three Departmental appeals were dismissed by the court. en-us Thu, 10 May 1979 00:00:00 +0530 Tue, 08 Mar 2011 13:28:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66968 The court upheld the decision of the Appellate Authority Commissioner (AAC) to allow the deduction of interest paid by firms to the bank for obtaining business loans under section 36(iii) of the IT Act. The court rejected the Department's argument that pledging fixed deposits transferred ownership to the firms, emphasizing that the interest paid on loans for business purposes was rightly allowed. As the loans were specifically utilized for business, the interest paid to the banks was considered an allowable deduction. Consequently, all three Departmental appeals were dismissed by the court. Case-Laws Income Tax Thu, 10 May 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66968