https://www.taxtmi.com/caselaws?id=266216 The Tribunal upheld the Commissioner of Income-tax (Appeals)'s decision to delete the disallowance of interest expenditure under section 36(1)(iii) of the Income-tax Act, 1961 for the assessment year 2009-10. The Tribunal found that the assessee had adequately explained the utilization of funds, demonstrating that the interest-bearing loan was directly used for legitimate business purposes. The Revenue's argument of diversion of funds was rejected, and the Tribunal emphasized that the Revenue cannot interfere with how the assessee conducts its business within legal boundaries. Consequently, the Revenue's appeal was dismissed for lacking merit. en-us Fri, 10 Apr 2015 00:00:00 +0530 Mon, 19 Oct 2015 07:52:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=266216 The Tribunal upheld the Commissioner of Income-tax (Appeals)'s decision to delete the disallowance of interest expenditure under section 36(1)(iii) of the Income-tax Act, 1961 for the assessment year 2009-10. The Tribunal found that the assessee had adequately explained the utilization of funds, demonstrating that the interest-bearing loan was directly used for legitimate business purposes. The Revenue's argument of diversion of funds was rejected, and the Tribunal emphasized that the Revenue cannot interfere with how the assessee conducts its business within legal boundaries. Consequently, the Revenue's appeal was dismissed for lacking merit. Case-Laws Income Tax Fri, 10 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=266216