https://www.taxtmi.com/caselaws?id=208052 The tribunal upheld the deletion of the addition made by the Assessing Officer under Section 36(1)(iii) of the Income Tax Act. The decision emphasized the lack of correlation between the loan taken and the investments made by the respondent, stating that the interest payment was consistent with previous years' transactions. Both the CIT (Appeals) and the tribunal concluded that there was no business justification for disallowing the interest payment, highlighting the importance of establishing a clear correlation between borrowed funds and investments for claiming deductions under the Act. en-us Fri, 09 Dec 2011 00:00:00 +0530 Thu, 29 Dec 2011 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208052 The tribunal upheld the deletion of the addition made by the Assessing Officer under Section 36(1)(iii) of the Income Tax Act. The decision emphasized the lack of correlation between the loan taken and the investments made by the respondent, stating that the interest payment was consistent with previous years' transactions. Both the CIT (Appeals) and the tribunal concluded that there was no business justification for disallowing the interest payment, highlighting the importance of establishing a clear correlation between borrowed funds and investments for claiming deductions under the Act. Case-Laws Income Tax Fri, 09 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208052