https://www.taxtmi.com/caselaws?id=179768 The High Court of Kerala found that the Tribunal erred in allowing deduction of interest paid on borrowed funds diverted by the assessee to sister concerns as interest-free loans. The Court emphasized the need for the assessee to demonstrate commercial expediency for such transactions, including establishing the business relationship, financial positions, and interest derived. As the Tribunal's decision was based on a Supreme Court ruling not available during assessment, the Court allowed the appeals, vacated the Tribunal's orders, and remanded the cases for further examination by the Assessing Officer with specific instructions for assessment procedures. en-us Fri, 16 Oct 2009 00:00:00 +0530 Wed, 09 Mar 2016 16:07:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179768 The High Court of Kerala found that the Tribunal erred in allowing deduction of interest paid on borrowed funds diverted by the assessee to sister concerns as interest-free loans. The Court emphasized the need for the assessee to demonstrate commercial expediency for such transactions, including establishing the business relationship, financial positions, and interest derived. As the Tribunal's decision was based on a Supreme Court ruling not available during assessment, the Court allowed the appeals, vacated the Tribunal's orders, and remanded the cases for further examination by the Assessing Officer with specific instructions for assessment procedures. Case-Laws Income Tax Fri, 16 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179768