https://www.taxtmi.com/caselaws?id=3495 The High Court ruled in favor of the assessee, overturning the Tribunal's decision to confirm the disallowance of Rs. 1,98,607 for the assessment year 1980-81. The court found that the borrowed money was not diverted to provide interest-free loans, satisfying the conditions of section 36(1)(iii) for full interest deduction on borrowed capital. As a result, the court answered in favor of the assessee against the Revenue, rendering the other issues moot. en-us Mon, 16 Oct 2006 00:00:00 +0530 Mon, 28 Jul 2008 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3495 The High Court ruled in favor of the assessee, overturning the Tribunal's decision to confirm the disallowance of Rs. 1,98,607 for the assessment year 1980-81. The court found that the borrowed money was not diverted to provide interest-free loans, satisfying the conditions of section 36(1)(iii) for full interest deduction on borrowed capital. As a result, the court answered in favor of the assessee against the Revenue, rendering the other issues moot. Case-Laws Income Tax Mon, 16 Oct 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3495