Interest Expenses Allowed u/s 36(1)(iii) as Funds Not Misused or Prematurely Repaid.

Interest Expenses Allowed u/s 36(1)(iii) as Funds Not Misused or Prematurely Repaid. https://www.taxtmi.com/highlights?id=57001 Disallowance u/s 36(1)(iii) on account of interest expense on borrowings - it was neither prudent for the assessee to divert any part of borrowed funds for nonbusiness purposes; nor was it prudent to make pre-payment of loan repayments even if the assessee had its own interest free funds. In these specific and peculiar facts and circumstances, there is no case for any disallowance of interest U/s 36(1)(iii) of I.T. Act. - AT en-us Thu, 04 Mar 2021 12:53:06 +0530 Thu, 04 Mar 2021 12:53:06 +0530 TaxTMI RSS Generator Interest Expenses Allowed u/s 36(1)(iii) as Funds Not Misused or Prematurely Repaid. https://www.taxtmi.com/highlights?id=57001 Disallowance u/s 36(1)(iii) on account of interest expense on borrowings - it was neither prudent for the assessee to divert any part of borrowed funds for nonbusiness purposes; nor was it prudent to make pre-payment of loan repayments even if the assessee had its own interest free funds. In these specific and peculiar facts and circumstances, there is no case for any disallowance of interest U/s 36(1)(iii) of I.T. Act. - AT Highlights Income Tax Thu, 04 Mar 2021 12:53:06 +0530 https://www.taxtmi.com/highlights?id=57001