https://www.taxtmi.com/caselaws?id=294488 The Tribunal directed the Assessing Officer to rectify the order for assessment years 2010-11 and 2011-12, emphasizing the need for clarity and precise adherence to its directions. It clarified the allowability of interest on borrowed funds for business purposes under Section 36(1)(iii) of the IT Act, highlighting the broader scope of "for the purpose of business." The Tribunal stressed the commercial expediency of interest-free loans to a wholly-owned subsidiary and the classification of interest expenditure as revenue or capital. It reiterated the binding nature of its decisions on lower authorities, underscoring the importance of following its orders without reinterpretation. en-us Wed, 29 Nov 2017 00:00:00 +0530 Sat, 17 Apr 2021 11:03:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=294488 The Tribunal directed the Assessing Officer to rectify the order for assessment years 2010-11 and 2011-12, emphasizing the need for clarity and precise adherence to its directions. It clarified the allowability of interest on borrowed funds for business purposes under Section 36(1)(iii) of the IT Act, highlighting the broader scope of "for the purpose of business." The Tribunal stressed the commercial expediency of interest-free loans to a wholly-owned subsidiary and the classification of interest expenditure as revenue or capital. It reiterated the binding nature of its decisions on lower authorities, underscoring the importance of following its orders without reinterpretation. Case-Laws Income Tax Wed, 29 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=294488