https://www.taxtmi.com/caselaws?id=175126 The court ruled in favor of the assessee, a private limited company, in a case concerning the deduction of interest paid on capital borrowed for business purposes under section 10(2)(iii) of the Income-tax Act. The court emphasized that as long as the borrowing transactions were genuine and the capital was used for business, the department could not disallow interest based on the claimed rate being unreasonably high. The court rejected the department's argument regarding the interest rate of 6? per cent., stating that once genuineness was established, the department could not question the reasonableness of the interest amount. The court dismissed the department's contentions and awarded costs to the assessee. en-us Thu, 09 Nov 1961 00:00:00 +0530 Sat, 07 Nov 2015 10:43:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175126 The court ruled in favor of the assessee, a private limited company, in a case concerning the deduction of interest paid on capital borrowed for business purposes under section 10(2)(iii) of the Income-tax Act. The court emphasized that as long as the borrowing transactions were genuine and the capital was used for business, the department could not disallow interest based on the claimed rate being unreasonably high. The court rejected the department's argument regarding the interest rate of 6? per cent., stating that once genuineness was established, the department could not question the reasonableness of the interest amount. The court dismissed the department's contentions and awarded costs to the assessee. Case-Laws Income Tax Thu, 09 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175126