https://www.taxtmi.com/caselaws?id=20161 HC affirmed the Tribunal's decision allowing deduction under section 36(1)(iii) for interest on borrowed funds used to acquire shares to obtain controlling interests. The court held that where borrowings and receipts are credited to a common fund and cannot be specifically traced, interest payable on capital borrowed for business purposes is deductible, even if the funds purchase capital assets rather than stock-in-trade. The proposed disallowance was rejected because the borrowings were for the purpose of the assessee's business, bringing the interest within section 36(1)(iii). en-us Mon, 21 Feb 1994 00:00:00 +0530 Thu, 16 Oct 2025 22:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20161 HC affirmed the Tribunal's decision allowing deduction under section 36(1)(iii) for interest on borrowed funds used to acquire shares to obtain controlling interests. The court held that where borrowings and receipts are credited to a common fund and cannot be specifically traced, interest payable on capital borrowed for business purposes is deductible, even if the funds purchase capital assets rather than stock-in-trade. The proposed disallowance was rejected because the borrowings were for the purpose of the assessee's business, bringing the interest within section 36(1)(iii). Case-Laws Income Tax Mon, 21 Feb 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20161