https://www.taxtmi.com/caselaws?id=221401 The case involved a dispute over the allowance of interest paid on capital borrowed for projects. The Income Tax Appellate Tribunal upheld the decision of the CIT (Appeals) and allowed the deduction of interest under Section 36(1)(iii) for business purposes, following a similar precedent set by the Apex Court. The courts emphasized that the purpose of borrowing for business activities, rather than the specific use of the borrowed capital, determines eligibility for deduction. The judgment clarified that as long as the funds are utilized for the business carried on by the assessee, the nature of assets acquired does not affect the allowance of interest on borrowed capital. en-us Wed, 25 Jan 2012 00:00:00 +0530 Sat, 09 Mar 2013 11:08:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221401 The case involved a dispute over the allowance of interest paid on capital borrowed for projects. The Income Tax Appellate Tribunal upheld the decision of the CIT (Appeals) and allowed the deduction of interest under Section 36(1)(iii) for business purposes, following a similar precedent set by the Apex Court. The courts emphasized that the purpose of borrowing for business activities, rather than the specific use of the borrowed capital, determines eligibility for deduction. The judgment clarified that as long as the funds are utilized for the business carried on by the assessee, the nature of assets acquired does not affect the allowance of interest on borrowed capital. Case-Laws Income Tax Wed, 25 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221401