https://www.taxtmi.com/caselaws?id=10287 HC upheld the Tribunal: the assessee was entitled to full deduction of interest on borrowed capital under section 36(1)(iii) since sufficient non-borrowed funds supported the intercompany loan and the AO had not apportioned interest earlier. Investment allowance was disallowed for plant/machinery used to manufacture items in the Eleventh Schedule (alcoholic products) but granted for a telephone exchange in the fertilizer unit as it qualifies as "plant." Interest received on loans/advances was held to be income from other sources, not business income. en-us Tue, 14 Sep 2004 00:00:00 +0530 Tue, 23 Sep 2025 18:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10287 HC upheld the Tribunal: the assessee was entitled to full deduction of interest on borrowed capital under section 36(1)(iii) since sufficient non-borrowed funds supported the intercompany loan and the AO had not apportioned interest earlier. Investment allowance was disallowed for plant/machinery used to manufacture items in the Eleventh Schedule (alcoholic products) but granted for a telephone exchange in the fertilizer unit as it qualifies as "plant." Interest received on loans/advances was held to be income from other sources, not business income. Case-Laws Income Tax Tue, 14 Sep 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10287