https://www.taxtmi.com/caselaws?id=9839 Interest on borrowings qualifies for deduction only where borrowed funds are used for business purposes. Interest attributable to interest-free advances to sister concerns without business justification is disallowable, irrespective of the source identified for those advances. Sales tax subsidy received after production begins is characterised by its purpose: a scheme linked to operational sales tax exemption and business profitability constitutes a revenue receipt, while a subsidy tied to establishing or expanding capital assets may be capital in nature. en-us Fri, 04 Aug 2006 00:00:00 +0530 Thu, 18 Sep 2025 13:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9839 Interest on borrowings qualifies for deduction only where borrowed funds are used for business purposes. Interest attributable to interest-free advances to sister concerns without business justification is disallowable, irrespective of the source identified for those advances. Sales tax subsidy received after production begins is characterised by its purpose: a scheme linked to operational sales tax exemption and business profitability constitutes a revenue receipt, while a subsidy tied to establishing or expanding capital assets may be capital in nature. Case-Laws Income Tax Fri, 04 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9839