https://www.taxtmi.com/caselaws?id=19946 The court upheld the disallowance of 15% of the interest paid under section 40A(8) of the Income-tax Act, finding that the provision applies to interest paid to friends and relatives of directors. The court emphasized that the source of funds is irrelevant, focusing instead on whether the company incurred interest expenditure on borrowed or received amounts. Relying on precedents, the court concluded that interest paid on amounts held by directors in current accounts qualifies as a deposit, leading to a ruling in favor of the Revenue and against the assessee, with no costs awarded. en-us Wed, 01 Sep 1993 00:00:00 +0530 Tue, 10 Nov 2009 17:18:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19946 The court upheld the disallowance of 15% of the interest paid under section 40A(8) of the Income-tax Act, finding that the provision applies to interest paid to friends and relatives of directors. The court emphasized that the source of funds is irrelevant, focusing instead on whether the company incurred interest expenditure on borrowed or received amounts. Relying on precedents, the court concluded that interest paid on amounts held by directors in current accounts qualifies as a deposit, leading to a ruling in favor of the Revenue and against the assessee, with no costs awarded. Case-Laws Income Tax Wed, 01 Sep 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19946