https://www.taxtmi.com/caselaws?id=331355 The court allowed the appeals, holding that the interest expenses were deductible under section 36(1)(iii) of the Income Tax Act, 1961. The court found that the borrowed funds were used for a business purpose, specifically to acquire shares in a sister concern for business expansion, satisfying the requirements of commercial expediency. The court rejected the ITAT's reasoning that the non-allotment of shares rendered the interest expenses non-deductible, emphasizing that the intention behind borrowing the funds for business purposes warranted the deduction of interest expenses. en-us Tue, 05 Apr 2016 00:00:00 +0530 Sat, 20 Aug 2016 08:45:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331355 The court allowed the appeals, holding that the interest expenses were deductible under section 36(1)(iii) of the Income Tax Act, 1961. The court found that the borrowed funds were used for a business purpose, specifically to acquire shares in a sister concern for business expansion, satisfying the requirements of commercial expediency. The court rejected the ITAT's reasoning that the non-allotment of shares rendered the interest expenses non-deductible, emphasizing that the intention behind borrowing the funds for business purposes warranted the deduction of interest expenses. Case-Laws Income Tax Tue, 05 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331355