https://www.taxtmi.com/caselaws?id=405702 The court allowed the appeal by the assessee, quashing the tribunal's orders that disallowed interest on borrowed capital for investments in a foreign subsidiary and on capital work in progress. The court held that the revenue failed to prove that borrowed funds were used for investments and that the proviso to Section 36(1)(iii) did not apply to the capital work in progress. The court also found the tribunal's increase in the interest rate unjustified and deemed the remand of the disallowance issue unnecessary. Additionally, the court upheld the tribunal's rectification order correcting errors in the initial decision. en-us Fri, 12 Mar 2021 00:00:00 +0530 Tue, 08 Jun 2021 14:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=405702 The court allowed the appeal by the assessee, quashing the tribunal's orders that disallowed interest on borrowed capital for investments in a foreign subsidiary and on capital work in progress. The court held that the revenue failed to prove that borrowed funds were used for investments and that the proviso to Section 36(1)(iii) did not apply to the capital work in progress. The court also found the tribunal's increase in the interest rate unjustified and deemed the remand of the disallowance issue unnecessary. Additionally, the court upheld the tribunal's rectification order correcting errors in the initial decision. Case-Laws Income Tax Fri, 12 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=405702