https://www.taxtmi.com/caselaws?id=328775 The Appellate Tribunal allowed the assessee's appeal, setting aside the First Appellate Authority's order disallowing interest expenses claimed. The Tribunal emphasized that deductions for interest paid on borrowed capital for business purposes are allowable under the Income Tax Act. It noted the lack of evidence showing borrowed funds were used for the advances and applied the presumption that interest-free funds were utilized. The Tribunal rejected the Authority's reliance on past cases and highlighted that the withdrawal of a previous appeal and the assessee's loss in that year did not set a precedent. en-us Wed, 18 May 2016 00:00:00 +0530 Tue, 14 Jun 2016 12:56:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328775 The Appellate Tribunal allowed the assessee's appeal, setting aside the First Appellate Authority's order disallowing interest expenses claimed. The Tribunal emphasized that deductions for interest paid on borrowed capital for business purposes are allowable under the Income Tax Act. It noted the lack of evidence showing borrowed funds were used for the advances and applied the presumption that interest-free funds were utilized. The Tribunal rejected the Authority's reliance on past cases and highlighted that the withdrawal of a previous appeal and the assessee's loss in that year did not set a precedent. Case-Laws Income Tax Wed, 18 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328775