https://www.taxtmi.com/caselaws?id=184930 The Tribunal upheld the disallowance of interest expenditure under sections 36(1)(iii) and 57(iii) of the Income Tax Act in the case involving an assessee-company seeking deduction for acquiring shares of VSNL. The court found that the borrowings were not for business purposes but to secure a controlling stake in VSNL, emphasizing the lack of a business motive or income-earning purpose. The appeal was dismissed, affirming the CIT (A)'s decision and highlighting the investment's strategic significance within the Tata group. en-us Mon, 05 Oct 2009 00:00:00 +0530 Mon, 25 Jul 2016 14:46:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184930 The Tribunal upheld the disallowance of interest expenditure under sections 36(1)(iii) and 57(iii) of the Income Tax Act in the case involving an assessee-company seeking deduction for acquiring shares of VSNL. The court found that the borrowings were not for business purposes but to secure a controlling stake in VSNL, emphasizing the lack of a business motive or income-earning purpose. The appeal was dismissed, affirming the CIT (A)'s decision and highlighting the investment's strategic significance within the Tata group. Case-Laws Income Tax Mon, 05 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184930