https://www.taxtmi.com/caselaws?id=216941 The Tribunal allowed the appeal of the assessee, reversing the disallowance of interest amounting to Rs.10,24,59,637/- paid on capital borrowed for business purposes. The Tribunal found that the advances to subsidiaries and other concerns were primarily from internal accruals and sale proceeds, not borrowed funds, and there was no significant increase in advances during the relevant assessment year. The Tribunal emphasized the need for a clear nexus between borrowed funds and interest-free advances, ultimately concluding that the assessee was entitled to the allowance of interest on borrowed capital used for business purposes. en-us Fri, 15 Jun 2012 00:00:00 +0530 Wed, 26 Sep 2012 18:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216941 The Tribunal allowed the appeal of the assessee, reversing the disallowance of interest amounting to Rs.10,24,59,637/- paid on capital borrowed for business purposes. The Tribunal found that the advances to subsidiaries and other concerns were primarily from internal accruals and sale proceeds, not borrowed funds, and there was no significant increase in advances during the relevant assessment year. The Tribunal emphasized the need for a clear nexus between borrowed funds and interest-free advances, ultimately concluding that the assessee was entitled to the allowance of interest on borrowed capital used for business purposes. Case-Laws Income Tax Fri, 15 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216941