https://www.taxtmi.com/caselaws?id=409271 The High Court of Karnataka allowed the appeal filed by the assessee, an advocate, challenging the Income Tax Appellate Tribunal's order regarding the disallowance of interest on borrowed capital for the assessment years 2013-14 and 2014-15. The Court ruled in favor of the appellant, stating that the disallowance was not justified considering the nature of the investments and the availability of interest-free funds. Additionally, the Court clarified the interpretation of the proviso to Section 36(1)(iii) in cases of business expansion, ultimately quashing the Tribunal's order. en-us Fri, 28 May 2021 00:00:00 +0530 Fri, 02 Jul 2021 14:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=409271 The High Court of Karnataka allowed the appeal filed by the assessee, an advocate, challenging the Income Tax Appellate Tribunal's order regarding the disallowance of interest on borrowed capital for the assessment years 2013-14 and 2014-15. The Court ruled in favor of the appellant, stating that the disallowance was not justified considering the nature of the investments and the availability of interest-free funds. Additionally, the Court clarified the interpretation of the proviso to Section 36(1)(iii) in cases of business expansion, ultimately quashing the Tribunal's order. Case-Laws Income Tax Fri, 28 May 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=409271