https://www.taxtmi.com/caselaws?id=241598 The High Court upheld the Tribunal's decision in an Income Tax Appeal regarding the disallowance of interest on borrowed capital for Project Work-in-Progress during the assessment year 1995-96. The Court supported the Tribunal's view that the interest should be considered as a revenue expenditure when funds are used for business expansion, emphasizing the lack of a direct nexus between borrowed funds and non-business purposes. The Court ruled in favor of the assessee, dismissing the Income Tax Appeal and deleting the addition of &8377;14,52,654 by the CIT (A). en-us Wed, 20 Nov 2013 00:00:00 +0530 Fri, 18 Mar 2016 11:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=241598 The High Court upheld the Tribunal's decision in an Income Tax Appeal regarding the disallowance of interest on borrowed capital for Project Work-in-Progress during the assessment year 1995-96. The Court supported the Tribunal's view that the interest should be considered as a revenue expenditure when funds are used for business expansion, emphasizing the lack of a direct nexus between borrowed funds and non-business purposes. The Court ruled in favor of the assessee, dismissing the Income Tax Appeal and deleting the addition of &8377;14,52,654 by the CIT (A). Case-Laws Income Tax Wed, 20 Nov 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=241598