https://www.taxtmi.com/caselaws?id=326844 The tribunal allowed the appeal, finding that the disallowance of interest paid to the bank on a cash credit account and penal interest was not justified. It concluded there was no nexus between the borrowed funds and investments/loans and recognized the compensatory nature of the penal interest. The tribunal referenced relevant case law and held in favor of the appellant, emphasizing business purposes and lack of justification for disallowance under the specified sections of the Act. en-us Mon, 28 Mar 2016 00:00:00 +0530 Tue, 26 Apr 2016 10:28:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326844 The tribunal allowed the appeal, finding that the disallowance of interest paid to the bank on a cash credit account and penal interest was not justified. It concluded there was no nexus between the borrowed funds and investments/loans and recognized the compensatory nature of the penal interest. The tribunal referenced relevant case law and held in favor of the appellant, emphasizing business purposes and lack of justification for disallowance under the specified sections of the Act. Case-Laws Income Tax Mon, 28 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326844