https://www.taxtmi.com/caselaws?id=3088 The SC allowed the assessee's appeals, holding that the firm was entitled to claim interest deductions under s.36(1)(iii) read with s.40(b)(iv) of the 1961 Act where loans continued for business purposes and interest rates did not exceed prescribed limits. The Court treated s.40 as corollary to ss.30-38, not standalone, placing on the assessee the burden to show entitlement and absence of disqualification. The Tribunal's finding that a Rs.5 lakh interest-free advance was not from own funds was erroneous given the firm's opening balance; High Court judgments were set aside and appeals allowed. en-us Tue, 19 Feb 2008 00:00:00 +0530 Wed, 10 Sep 2025 14:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3088 The SC allowed the assessee's appeals, holding that the firm was entitled to claim interest deductions under s.36(1)(iii) read with s.40(b)(iv) of the 1961 Act where loans continued for business purposes and interest rates did not exceed prescribed limits. The Court treated s.40 as corollary to ss.30-38, not standalone, placing on the assessee the burden to show entitlement and absence of disqualification. The Tribunal's finding that a Rs.5 lakh interest-free advance was not from own funds was erroneous given the firm's opening balance; High Court judgments were set aside and appeals allowed. Case-Laws Income Tax Tue, 19 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3088