https://www.taxtmi.com/caselaws?id=182694 Interest on borrowed funds remained deductible where an investment and finance company continued business activity during the year, including share transactions and other expenditure, because the decisive test under section 36(1)(iii) was whether the borrowings were for business purposes and interest was paid on them. The character of the assets, absence of immediate profit, and deployment of funds in long-term investments did not defeat the claim. A transfer of NOCIL shares to a partnership firm was also treated as genuine where supported by journal entries, ledger records, beneficial ownership disclosures, and transferee confirmation; section 45(3) applied even though formal registration in the company's records was delayed, so the capital loss was allowable. en-us Wed, 23 Apr 2003 00:00:00 +0530 Tue, 17 May 2016 18:55:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182694 Interest on borrowed funds remained deductible where an investment and finance company continued business activity during the year, including share transactions and other expenditure, because the decisive test under section 36(1)(iii) was whether the borrowings were for business purposes and interest was paid on them. The character of the assets, absence of immediate profit, and deployment of funds in long-term investments did not defeat the claim. A transfer of NOCIL shares to a partnership firm was also treated as genuine where supported by journal entries, ledger records, beneficial ownership disclosures, and transferee confirmation; section 45(3) applied even though formal registration in the company's records was delayed, so the capital loss was allowable. Case-Laws Income Tax Wed, 23 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182694