https://www.taxtmi.com/caselaws?id=11792 The court ruled in favor of the assessee on both issues. Regarding the sales promotion expenses for food and drinks provided to employees during a seminar, the court held that such expenses qualify as business expenditures and are not disallowable under section 37(2A) of the Income-tax Act. Concerning the disallowance of interest on borrowed capital under section 36(1)(iii), the court concluded that if the borrowed funds were used for acquiring a fixed asset for business purposes, the interest should be allowable. The case was remanded to the Tribunal for reassessment based on the court's findings. en-us Wed, 29 Jan 2003 00:00:00 +0530 Tue, 09 Feb 2010 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11792 The court ruled in favor of the assessee on both issues. Regarding the sales promotion expenses for food and drinks provided to employees during a seminar, the court held that such expenses qualify as business expenditures and are not disallowable under section 37(2A) of the Income-tax Act. Concerning the disallowance of interest on borrowed capital under section 36(1)(iii), the court concluded that if the borrowed funds were used for acquiring a fixed asset for business purposes, the interest should be allowable. The case was remanded to the Tribunal for reassessment based on the court's findings. Case-Laws Income Tax Wed, 29 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11792