https://www.taxtmi.com/caselaws?id=76011 HC disallowed interest deduction for diversion of borrowed funds, ruling that advances must serve the assessee's commercial expediency-that is, a nexus to preservation, protection or advancement of the business-distinct from directors' or partners' personal interests. The court held that some business objective must be achieved by interest-free advances, regardless of whether they came from borrowed or mixed funds. The assessee failed this test, and the decision was pronounced in favor of the revenue. en-us Fri, 14 May 2010 00:00:00 +0530 Fri, 29 Aug 2025 11:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76011 HC disallowed interest deduction for diversion of borrowed funds, ruling that advances must serve the assessee's commercial expediency-that is, a nexus to preservation, protection or advancement of the business-distinct from directors' or partners' personal interests. The court held that some business objective must be achieved by interest-free advances, regardless of whether they came from borrowed or mixed funds. The assessee failed this test, and the decision was pronounced in favor of the revenue. Case-Laws Income Tax Fri, 14 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76011