https://www.taxtmi.com/caselaws?id=14322 The court ruled against the assessee, favoring the Revenue in interpreting section 36(1)(iii) of the Income-tax Act, 1961. The court held that outstanding salaries due to directors, even if credited with interest, did not qualify as capital borrowed for business purposes. Interest on undisbursed salaries did not meet the criteria of interest on borrowed capital under the Act. Consequently, the court rejected the deductions claimed by the assessee, emphasizing that the amounts in question did not constitute capital borrowed. en-us Wed, 29 Nov 2000 00:00:00 +0530 Wed, 15 Jul 2009 12:14:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14322 The court ruled against the assessee, favoring the Revenue in interpreting section 36(1)(iii) of the Income-tax Act, 1961. The court held that outstanding salaries due to directors, even if credited with interest, did not qualify as capital borrowed for business purposes. Interest on undisbursed salaries did not meet the criteria of interest on borrowed capital under the Act. Consequently, the court rejected the deductions claimed by the assessee, emphasizing that the amounts in question did not constitute capital borrowed. Case-Laws Income Tax Wed, 29 Nov 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14322