https://www.taxtmi.com/caselaws?id=155510 Interest on borrowings was held not to be disallowable where the assessee had sufficient own funds, the advances were short-term and made in the ordinary course of business, and the Revenue failed to prove diversion of borrowed money to non-business use. Advances to related entities, including group finance concerns and a security deposit for a proposed godown, were accepted as commercially expedient and supported by business considerations, so the corresponding disallowances were sustained as not warranting interference. Interest paid on overdue supplier bills to an associate concern was also treated as allowable because the payment had a business nexus, the transaction was genuine, and the Revenue could not substitute its view of commercial prudence for that of the businessman. en-us Thu, 30 Sep 2010 00:00:00 +0530 Tue, 13 Feb 2024 15:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155510 Interest on borrowings was held not to be disallowable where the assessee had sufficient own funds, the advances were short-term and made in the ordinary course of business, and the Revenue failed to prove diversion of borrowed money to non-business use. Advances to related entities, including group finance concerns and a security deposit for a proposed godown, were accepted as commercially expedient and supported by business considerations, so the corresponding disallowances were sustained as not warranting interference. Interest paid on overdue supplier bills to an associate concern was also treated as allowable because the payment had a business nexus, the transaction was genuine, and the Revenue could not substitute its view of commercial prudence for that of the businessman. Case-Laws Income Tax Thu, 30 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155510