https://www.taxtmi.com/caselaws?id=368473 The High Court dismissed the Revenue's appeal regarding the disallowance of part interest paid on unsecured loans by the respondent-assessee. The Tribunal's decision to delete the addition of the disallowed interest amount was upheld based on the finding that the interest was paid on capital borrowed for business purposes, aligning with the deduction criteria under Section 36(1)(iii) of the Income Tax Act. The court emphasized the concept of "commercial expediency" and ruled that interest paid for business or professional purposes is deductible, even if the funds were advanced to third parties without earning interest. en-us Tue, 25 Sep 2018 00:00:00 +0530 Sat, 29 Dec 2018 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368473 The High Court dismissed the Revenue's appeal regarding the disallowance of part interest paid on unsecured loans by the respondent-assessee. The Tribunal's decision to delete the addition of the disallowed interest amount was upheld based on the finding that the interest was paid on capital borrowed for business purposes, aligning with the deduction criteria under Section 36(1)(iii) of the Income Tax Act. The court emphasized the concept of "commercial expediency" and ruled that interest paid for business or professional purposes is deductible, even if the funds were advanced to third parties without earning interest. Case-Laws Income Tax Tue, 25 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368473