https://www.taxtmi.com/caselaws?id=397905 The Tribunal allowed the appeal, overturning the disallowance of interest expenditure on short term borrowings utilized for payment of share application money. The decision emphasized that interest on borrowed funds for share application money was deductible under section 36(1)(iii) if borrowed for business purposes, aligning with established legal interpretations. The Tribunal highlighted the significance of establishing a direct nexus between borrowed funds, business activities, and interest expenditure to determine deductibility under the Income Tax Act, 1961. en-us Fri, 17 Jul 2020 00:00:00 +0530 Tue, 01 Sep 2020 13:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=397905 The Tribunal allowed the appeal, overturning the disallowance of interest expenditure on short term borrowings utilized for payment of share application money. The decision emphasized that interest on borrowed funds for share application money was deductible under section 36(1)(iii) if borrowed for business purposes, aligning with established legal interpretations. The Tribunal highlighted the significance of establishing a direct nexus between borrowed funds, business activities, and interest expenditure to determine deductibility under the Income Tax Act, 1961. Case-Laws Income Tax Fri, 17 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=397905