https://www.taxtmi.com/caselaws?id=207429 HC upheld the ITAT's finding that interest on funds borrowed by the assessee to subscribe to equity in its wholly owned subsidiary was deductible as business expenditure under s.36(1)(iii) of the IT Act. The Court accepted that the assessee, engaged in owning, running and managing hotels, had invested in the subsidiary to secure effective control over newly acquired hotels under its management, rendering the borrowing intrinsically linked to its business. Any debate on deductibility under s.57(iii) was treated as academic. Holding that no substantial question of law arose from the Tribunal's order, the HC dismissed the Revenue's appeals. en-us Thu, 18 Aug 2011 00:00:00 +0530 Tue, 02 Dec 2025 17:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207429 HC upheld the ITAT's finding that interest on funds borrowed by the assessee to subscribe to equity in its wholly owned subsidiary was deductible as business expenditure under s.36(1)(iii) of the IT Act. The Court accepted that the assessee, engaged in owning, running and managing hotels, had invested in the subsidiary to secure effective control over newly acquired hotels under its management, rendering the borrowing intrinsically linked to its business. Any debate on deductibility under s.57(iii) was treated as academic. Holding that no substantial question of law arose from the Tribunal's order, the HC dismissed the Revenue's appeals. Case-Laws Income Tax Thu, 18 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207429