https://www.taxtmi.com/caselaws?id=21581 The High Court of Karnataka ruled in favor of the company, allowing the deduction claim for interest on borrowings related to assets transferred to a newly incorporated company. The Court found that the expenditure incurred for setting up the new undertaking was part of the company's existing business operations, rejecting the Revenue's argument that the assets were diverted as capital to the new entity. Emphasizing the interconnection between ventures to determine the same business, the Court held that the borrowed funds were used for the company's business purposes, affirming the deductibility of interest paid on these borrowings. en-us Fri, 27 Sep 1991 00:00:00 +0530 Wed, 25 Nov 2009 15:42:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21581 The High Court of Karnataka ruled in favor of the company, allowing the deduction claim for interest on borrowings related to assets transferred to a newly incorporated company. The Court found that the expenditure incurred for setting up the new undertaking was part of the company's existing business operations, rejecting the Revenue's argument that the assets were diverted as capital to the new entity. Emphasizing the interconnection between ventures to determine the same business, the Court held that the borrowed funds were used for the company's business purposes, affirming the deductibility of interest paid on these borrowings. Case-Laws Income Tax Fri, 27 Sep 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21581