https://www.taxtmi.com/caselaws?id=70845 Interest on borrowed capital remains allowable where the borrowed funds are used for business purposes. The Tribunal noted that a partner's private use of the firm's current earnings does not, by itself, defeat the deduction if the borrowings themselves were applied to business. Because the actual utilisation of the borrowed monies had not been properly examined, the disallowance was set aside and the matter sent back for fresh verification of business use. The assessee's claim was left open for allowance if such use is established on scrutiny. en-us Wed, 12 Dec 1979 00:00:00 +0530 Tue, 19 Apr 2011 16:17:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70845 Interest on borrowed capital remains allowable where the borrowed funds are used for business purposes. The Tribunal noted that a partner's private use of the firm's current earnings does not, by itself, defeat the deduction if the borrowings themselves were applied to business. Because the actual utilisation of the borrowed monies had not been properly examined, the disallowance was set aside and the matter sent back for fresh verification of business use. The assessee's claim was left open for allowance if such use is established on scrutiny. Case-Laws Income Tax Wed, 12 Dec 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70845