https://www.taxtmi.com/caselaws?id=14801 Interest on borrowed funds diverted to interest-free advances for directors' non-business use is not deductible to that extent. The disallowance is to be computed proportionately by applying the same rate of interest that the assessee paid on the borrowings. On that basis, the Tribunal's approach to disallow interest at the borrowing rate was upheld, and the assessee's claim failed. en-us Wed, 15 Dec 1999 00:00:00 +0530 Sat, 18 Jul 2009 17:08:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14801 Interest on borrowed funds diverted to interest-free advances for directors' non-business use is not deductible to that extent. The disallowance is to be computed proportionately by applying the same rate of interest that the assessee paid on the borrowings. On that basis, the Tribunal's approach to disallow interest at the borrowing rate was upheld, and the assessee's claim failed. Case-Laws Income Tax Wed, 15 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14801