https://www.taxtmi.com/caselaws?id=217991 The Revenue's appeal against the deletion of the disallowance of interest on borrowed capital amounting to Rs. 15,22,917/- was dismissed by the Tribunal. The Commissioner of Income Tax(A) had allowed the appeal, emphasizing that the borrowed capital was not diverted for non-business purposes and that the assessee had substantial own funds from which the advances were made. The Tribunal found no nexus between the interest-free advances and the interest-bearing borrowed capital, concluding that there was no reason to interfere with the Commissioner's decision. en-us Fri, 18 May 2012 00:00:00 +0530 Thu, 01 Nov 2012 09:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217991 The Revenue's appeal against the deletion of the disallowance of interest on borrowed capital amounting to Rs. 15,22,917/- was dismissed by the Tribunal. The Commissioner of Income Tax(A) had allowed the appeal, emphasizing that the borrowed capital was not diverted for non-business purposes and that the assessee had substantial own funds from which the advances were made. The Tribunal found no nexus between the interest-free advances and the interest-bearing borrowed capital, concluding that there was no reason to interfere with the Commissioner's decision. Case-Laws Income Tax Fri, 18 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217991