https://www.taxtmi.com/caselaws?id=19700 Borrowed funds were advanced to directors and connected concerns either interest-free or at a rate below the assessee's borrowing cost, raising a legal issue on disallowance of interest under section 36(1)(iii) of the Income-tax Act, 1961. The High Court treated the controversy over allowability of interest on capital borrowed for business purposes as a question of law, not merely a factual dispute, and held that it was fit for reference under section 256(1). The Tribunal was directed to state the case and refer the question in favour of the Revenue. en-us Tue, 05 Apr 1994 00:00:00 +0530 Mon, 09 Nov 2009 10:48:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19700 Borrowed funds were advanced to directors and connected concerns either interest-free or at a rate below the assessee's borrowing cost, raising a legal issue on disallowance of interest under section 36(1)(iii) of the Income-tax Act, 1961. The High Court treated the controversy over allowability of interest on capital borrowed for business purposes as a question of law, not merely a factual dispute, and held that it was fit for reference under section 256(1). The Tribunal was directed to state the case and refer the question in favour of the Revenue. Case-Laws Income Tax Tue, 05 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19700