https://www.taxtmi.com/caselaws?id=12887 HC reversed the Tribunal and answered the questions in favour of the Revenue. It held that interest paid on borrowings is disallowable in proportion to interest-free advances made to partners, relatives and sister concerns where the firm is not the beneficiary of those investments. The Assessing Officer was justified in disallowing the proportionate interest since borrowings to replace diverted cash are not for the firm's business purposes. The Tribunal's reliance on a distinguishable decision was rejected. en-us Wed, 31 Oct 2001 00:00:00 +0530 Thu, 02 Oct 2025 10:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12887 HC reversed the Tribunal and answered the questions in favour of the Revenue. It held that interest paid on borrowings is disallowable in proportion to interest-free advances made to partners, relatives and sister concerns where the firm is not the beneficiary of those investments. The Assessing Officer was justified in disallowing the proportionate interest since borrowings to replace diverted cash are not for the firm's business purposes. The Tribunal's reliance on a distinguishable decision was rejected. Case-Laws Income Tax Wed, 31 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12887