https://www.taxtmi.com/caselaws?id=205639 The High Court dismissed the appeal, upholding the Tribunal's decision to disallow interest paid on term loans for asset acquisition in the existing business under the proviso to section 36(1)(iii) of the Income-Tax Act, 1961. The court rejected the argument that there was only an expansion, not an extension, in business activities, determining that the increase in spindle capacity constituted an extension of the business. The judgment emphasized the importance of factual analysis and legislative interpretation in tax deduction eligibility. en-us Thu, 07 Apr 2011 00:00:00 +0530 Wed, 14 Sep 2011 22:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205639 The High Court dismissed the appeal, upholding the Tribunal's decision to disallow interest paid on term loans for asset acquisition in the existing business under the proviso to section 36(1)(iii) of the Income-Tax Act, 1961. The court rejected the argument that there was only an expansion, not an extension, in business activities, determining that the increase in spindle capacity constituted an extension of the business. The judgment emphasized the importance of factual analysis and legislative interpretation in tax deduction eligibility. Case-Laws Income Tax Thu, 07 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205639