https://www.taxtmi.com/caselaws?id=338521 The court ruled in favor of the assessee, holding that the disallowance of interest paid on borrowed funds in excess of 12 per cent was not justified under section 36(1) of the Income-tax Act. The court emphasized the significance of commercial expediency in determining the deductibility of interest, stating that the loans advanced to sister companies were for commercial purposes. The judgment highlighted the importance of considering commercial expediency in such cases and ultimately resolved the issue in favor of the assessee. en-us Tue, 09 Aug 2016 00:00:00 +0530 Wed, 08 Jul 2026 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338521 The court ruled in favor of the assessee, holding that the disallowance of interest paid on borrowed funds in excess of 12 per cent was not justified under section 36(1) of the Income-tax Act. The court emphasized the significance of commercial expediency in determining the deductibility of interest, stating that the loans advanced to sister companies were for commercial purposes. The judgment highlighted the importance of considering commercial expediency in such cases and ultimately resolved the issue in favor of the assessee. Case-Laws Income Tax Tue, 09 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338521