https://www.taxtmi.com/caselaws?id=291348 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the disallowed interest amount on loans taken from directors for business activities. The Tribunal emphasized that borrowing costs for business purposes are deductible under section 36(1)(iii) of the Income Tax Act, regardless of whether the capital is used for revenue or capital assets. Considering the purpose of the borrowing and the commencement of business activities, the Tribunal found in favor of the assessee, overturning the Commissioner of Income Tax (Appeals) decision to uphold the disallowance of interest expenditure. en-us Mon, 29 Jul 2019 00:00:00 +0530 Sat, 07 Nov 2020 08:37:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291348 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the disallowed interest amount on loans taken from directors for business activities. The Tribunal emphasized that borrowing costs for business purposes are deductible under section 36(1)(iii) of the Income Tax Act, regardless of whether the capital is used for revenue or capital assets. Considering the purpose of the borrowing and the commencement of business activities, the Tribunal found in favor of the assessee, overturning the Commissioner of Income Tax (Appeals) decision to uphold the disallowance of interest expenditure. Case-Laws Income Tax Mon, 29 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291348