https://www.taxtmi.com/caselaws?id=3024 SC held that Section 36(1)(iii) must be read on its own terms and allows deduction of interest on borrowings used for acquiring capital assets even if the asset is not yet put to use, provided the borrowing was for the purpose of the assessee's business. Earlier decisions distinguishing borrowings for a running business and borrowings when no business had commenced are reconcilable. Consequently, the Assessing Officer's disallowance of interest of Rs.1,56,76,000 was unjustified and the appeal was decided in favor of the assessee. en-us Fri, 08 Feb 2008 00:00:00 +0530 Fri, 27 Feb 2026 15:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3024 SC held that Section 36(1)(iii) must be read on its own terms and allows deduction of interest on borrowings used for acquiring capital assets even if the asset is not yet put to use, provided the borrowing was for the purpose of the assessee's business. Earlier decisions distinguishing borrowings for a running business and borrowings when no business had commenced are reconcilable. Consequently, the Assessing Officer's disallowance of interest of Rs.1,56,76,000 was unjustified and the appeal was decided in favor of the assessee. Case-Laws Income Tax Fri, 08 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3024