https://www.taxtmi.com/caselaws?id=69587 Borrowing-related interest cannot be disallowed where the interest-free advance is linked to the assessee's business objects and supported by commercial expediency; on those facts, the advance to Unitel Communications Ltd. qualified as business-related and the disallowance was deleted. Where no comparable business nexus was shown, the interest disallowance on the advance to Sapthagiri Traders Pvt. Ltd. was sustained. For income classification, dividend received from a year dominated by investment activity was treated as income from other sources, while interest earned from lending activity inherent in the assessee's objects was taxed as business income. en-us Mon, 04 Dec 1995 00:00:00 +0530 Thu, 07 Apr 2011 17:52:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69587 Borrowing-related interest cannot be disallowed where the interest-free advance is linked to the assessee's business objects and supported by commercial expediency; on those facts, the advance to Unitel Communications Ltd. qualified as business-related and the disallowance was deleted. Where no comparable business nexus was shown, the interest disallowance on the advance to Sapthagiri Traders Pvt. Ltd. was sustained. For income classification, dividend received from a year dominated by investment activity was treated as income from other sources, while interest earned from lending activity inherent in the assessee's objects was taxed as business income. Case-Laws Income Tax Mon, 04 Dec 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69587