https://www.taxtmi.com/caselaws?id=6641 Deductibility of interest under section 10(2)(iii) depended on whether the borrowed capital was used for the assessee's business. Where the advances were made in the ordinary course of business and the borrowed moneys formed part of mixed general funds, the later waiver of interest on one debtor's account did not alter the character of the original borrowing or the advances. The waiver therefore did not defeat the statutory test for interest deduction, and the entire interest payment was treated as allowable. en-us Wed, 14 Sep 1960 00:00:00 +0530 Sat, 31 Jan 2009 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6641 Deductibility of interest under section 10(2)(iii) depended on whether the borrowed capital was used for the assessee's business. Where the advances were made in the ordinary course of business and the borrowed moneys formed part of mixed general funds, the later waiver of interest on one debtor's account did not alter the character of the original borrowing or the advances. The waiver therefore did not defeat the statutory test for interest deduction, and the entire interest payment was treated as allowable. Case-Laws Income Tax Wed, 14 Sep 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6641