https://www.taxtmi.com/caselaws?id=301376 The Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decision regarding the disallowance of interest under the proviso to section 36(1)(iii) of the Income Tax Act. The Tribunal emphasized the necessity of establishing a direct nexus between borrowed capital and assets for business expansion. It found that the Assessing Officer failed to prove this connection and did not consider the fresh capital introduced by the assessee. The Tribunal concluded that the borrowed funds were utilized for business purposes, leading to the dismissal of the revenue's appeal on 24-04-2015. en-us Fri, 24 Apr 2015 00:00:00 +0530 Fri, 01 Apr 2022 08:35:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=301376 The Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decision regarding the disallowance of interest under the proviso to section 36(1)(iii) of the Income Tax Act. The Tribunal emphasized the necessity of establishing a direct nexus between borrowed capital and assets for business expansion. It found that the Assessing Officer failed to prove this connection and did not consider the fresh capital introduced by the assessee. The Tribunal concluded that the borrowed funds were utilized for business purposes, leading to the dismissal of the revenue's appeal on 24-04-2015. Case-Laws Income Tax Fri, 24 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=301376