https://www.taxtmi.com/caselaws?id=250988 The appellant challenged the disallowance of interest deduction on loans borrowed for business purposes due to lending to a sister concern without interest. The Tribunal upheld the decision, stating that without proof of direct transfer of borrowed funds to the sister concern, disallowance was unjustified. The law permits borrowing from one source and lending to another, and the assessing officer failed to establish a direct link between the borrowed amount and the sister concern's advances. Consequently, the appeals were dismissed, and no costs were awarded. en-us Tue, 12 Aug 2014 00:00:00 +0530 Tue, 10 Feb 2015 12:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=250988 The appellant challenged the disallowance of interest deduction on loans borrowed for business purposes due to lending to a sister concern without interest. The Tribunal upheld the decision, stating that without proof of direct transfer of borrowed funds to the sister concern, disallowance was unjustified. The law permits borrowing from one source and lending to another, and the assessing officer failed to establish a direct link between the borrowed amount and the sister concern's advances. Consequently, the appeals were dismissed, and no costs were awarded. Case-Laws Income Tax Tue, 12 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=250988