https://www.taxtmi.com/caselaws?id=243010 The Tribunal allowed the appeal in favor of the assessee, setting aside the disallowance of Rs. 92,86,667 under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal held that the borrowed funds were not used for non-business purposes, as the interest-free funds were utilized for investments in subsidiary companies. The Tribunal emphasized that the Revenue cannot dictate how the assessee deploys its funds and cannot compel profit maximization for higher tax payments. Therefore, no disallowance of interest expenditure on a notional basis was warranted. en-us Wed, 22 Jan 2014 00:00:00 +0530 Sat, 25 Jan 2014 15:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243010 The Tribunal allowed the appeal in favor of the assessee, setting aside the disallowance of Rs. 92,86,667 under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal held that the borrowed funds were not used for non-business purposes, as the interest-free funds were utilized for investments in subsidiary companies. The Tribunal emphasized that the Revenue cannot dictate how the assessee deploys its funds and cannot compel profit maximization for higher tax payments. Therefore, no disallowance of interest expenditure on a notional basis was warranted. Case-Laws Income Tax Wed, 22 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243010