https://www.taxtmi.com/caselaws?id=176265 Interest on capital borrowed for business remained deductible under section 10(2)(iii) of the Indian Income-tax Act, 1922 because the statutory test depended on the purpose of the borrowing, not on later withdrawals from the business for personal expenses. The assessee had borrowed funds for carrying on the Hindu undivided family business, and subsequent personal use of withdrawn amounts did not alter the character of the original borrowing. In the absence of any specific borrowing made for household expenses, the required link to deny the deduction was not established, so the disallowance was unjustified. en-us Thu, 16 Nov 1961 00:00:00 +0530 Fri, 18 Dec 2015 13:28:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176265 Interest on capital borrowed for business remained deductible under section 10(2)(iii) of the Indian Income-tax Act, 1922 because the statutory test depended on the purpose of the borrowing, not on later withdrawals from the business for personal expenses. The assessee had borrowed funds for carrying on the Hindu undivided family business, and subsequent personal use of withdrawn amounts did not alter the character of the original borrowing. In the absence of any specific borrowing made for household expenses, the required link to deny the deduction was not established, so the disallowance was unjustified. Case-Laws Income Tax Thu, 16 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176265