https://www.taxtmi.com/caselaws?id=6396 The High Court held that interest paid on borrowed capital advanced to subsidiaries free of interest was not deductible under section 36(1)(iii) of the Income-tax Act, 1961. The Court found that the subsidiaries were separate legal entities and there was no evidence of the interest being for the purpose of the assessee's business. The Tribunal was directed to reconsider the appeals, taking into account the evidence and law, and addressing the issue of reopening assessments. The assessee was ordered to pay the costs of the reference. en-us Thu, 06 Jan 1972 00:00:00 +0530 Mon, 25 Jul 2016 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6396 The High Court held that interest paid on borrowed capital advanced to subsidiaries free of interest was not deductible under section 36(1)(iii) of the Income-tax Act, 1961. The Court found that the subsidiaries were separate legal entities and there was no evidence of the interest being for the purpose of the assessee's business. The Tribunal was directed to reconsider the appeals, taking into account the evidence and law, and addressing the issue of reopening assessments. The assessee was ordered to pay the costs of the reference. Case-Laws Income Tax Thu, 06 Jan 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6396