Interest on unrecorded deposits can be disallowed, but section 37(1) may exempt interest on capital borrowed for business. https://www.taxtmi.com/highlights?id=12989 Disallowance of interest paid on deposit outside the books of account - provisions of section 37(1) may not be applicable in respect of interest on the capital borrowed for business purpose. - AT en-us Sat, 08 Jun 2013 11:55:28 +0530 Sat, 08 Jun 2013 11:55:28 +0530 TaxTMI RSS Generator Interest on unrecorded deposits can be disallowed, but section 37(1) may exempt interest on capital borrowed for business. https://www.taxtmi.com/highlights?id=12989 Disallowance of interest paid on deposit outside the books of account - provisions of section 37(1) may not be applicable in respect of interest on the capital borrowed for business purpose. - AT Highlights Income Tax Sat, 08 Jun 2013 11:55:28 +0530 https://www.taxtmi.com/highlights?id=12989