https://www.taxtmi.com/caselaws?id=18190 The High Court of Madras ruled in favor of the Department, denying the deduction under section 36(1)(iii) for interest paid on borrowed capital used for non-business purposes. The Court found that a portion of the borrowed capital was indeed used for non-business activities, disagreeing with the Tribunal's presumption that withdrawals for personal use were from the assessee's capital. The Court held that borrowed capital used for non-business purposes cannot claim interest deduction, despite the Appellate Assistant Commissioner's decision to overturn the disallowance. en-us Fri, 19 Jan 1996 00:00:00 +0530 Tue, 29 Sep 2009 13:46:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18190 The High Court of Madras ruled in favor of the Department, denying the deduction under section 36(1)(iii) for interest paid on borrowed capital used for non-business purposes. The Court found that a portion of the borrowed capital was indeed used for non-business activities, disagreeing with the Tribunal's presumption that withdrawals for personal use were from the assessee's capital. The Court held that borrowed capital used for non-business purposes cannot claim interest deduction, despite the Appellate Assistant Commissioner's decision to overturn the disallowance. Case-Laws Income Tax Fri, 19 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18190