https://www.taxtmi.com/caselaws?id=278573 The Tribunal upheld the Commissioner of Income Tax (Appeals) decision to disallow interest on borrowed funds amounting to Rs. 61,77,008/- as the assessee failed to demonstrate that the advances to sister concerns were for business purposes or commercially expedient. The Tribunal emphasized that interest on borrowed capital is deductible only if used for business purposes, and the assessee did not discharge the onus of proving that the borrowed funds were not diverted for non-business purposes. The appeal by the assessee was dismissed. en-us Wed, 15 Jun 2016 00:00:00 +0530 Wed, 13 Feb 2019 06:04:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278573 The Tribunal upheld the Commissioner of Income Tax (Appeals) decision to disallow interest on borrowed funds amounting to Rs. 61,77,008/- as the assessee failed to demonstrate that the advances to sister concerns were for business purposes or commercially expedient. The Tribunal emphasized that interest on borrowed capital is deductible only if used for business purposes, and the assessee did not discharge the onus of proving that the borrowed funds were not diverted for non-business purposes. The appeal by the assessee was dismissed. Case-Laws Income Tax Wed, 15 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278573