https://www.taxtmi.com/caselaws?id=204032 HC allowed taxpayer's appeals against disallowance of interest on borrowed funds used for interest-free advances to subsidiaries. Court found AO failed to demonstrate any direct nexus between specific borrowings and the advances, relying on general observations only. Appellate authorities had established that advances were made from the entity's own capital and reserves, not borrowings, and were supported by commercial expediency. Onus on the taxpayer was discharged. Appeals were decided for the taxpayer and dismissed with no orders as to costs. en-us Mon, 03 Jan 2011 00:00:00 +0530 Tue, 26 Aug 2025 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204032 HC allowed taxpayer's appeals against disallowance of interest on borrowed funds used for interest-free advances to subsidiaries. Court found AO failed to demonstrate any direct nexus between specific borrowings and the advances, relying on general observations only. Appellate authorities had established that advances were made from the entity's own capital and reserves, not borrowings, and were supported by commercial expediency. Onus on the taxpayer was discharged. Appeals were decided for the taxpayer and dismissed with no orders as to costs. Case-Laws Income Tax Mon, 03 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204032