https://www.taxtmi.com/caselaws?id=415689 Foreign exchange fluctuation loss on external commercial borrowing used to acquire a controlling stake in a foreign company was treated as revenue expenditure because the borrowing served business expansion and the loss was distinct from the share acquisition cost. In section 14A read with Rule 8D, interest disallowance was deleted where own funds exceeded the investments and no borrowed funds were shown to have been used; only the administrative component could remain. Interest disallowance on funds advanced to a subsidiary was also deleted because sufficient interest-free funds existed and the advance was supported by commercial expediency. Cash payment disallowance under section 40A(3) was not sustained since payments to each person on a day did not cross the statutory threshold. en-us Wed, 08 Dec 2021 00:00:00 +0530 Sat, 11 Dec 2021 09:27:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=415689 Foreign exchange fluctuation loss on external commercial borrowing used to acquire a controlling stake in a foreign company was treated as revenue expenditure because the borrowing served business expansion and the loss was distinct from the share acquisition cost. In section 14A read with Rule 8D, interest disallowance was deleted where own funds exceeded the investments and no borrowed funds were shown to have been used; only the administrative component could remain. Interest disallowance on funds advanced to a subsidiary was also deleted because sufficient interest-free funds existed and the advance was supported by commercial expediency. Cash payment disallowance under section 40A(3) was not sustained since payments to each person on a day did not cross the statutory threshold. Case-Laws Income Tax Wed, 08 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=415689