https://www.taxtmi.com/caselaws?id=28802 The High Court of Madhya Pradesh ruled in favor of the assessee in a case involving the interpretation of deduction of interest under section 36(1)(iii) of the Income-tax Act, 1961. The Court held that the deduction of interest is contingent upon borrowing for business purposes and actual payment of interest, not on the purpose of the borrowed amount. As the Tribunal did not find any failure to meet these conditions, the disallowance based on the absence of interest charged on advances to sister concerns was deemed unjustified. The Court directed the parties to bear their own costs in the reference. en-us Fri, 02 Jul 1982 00:00:00 +0530 Thu, 25 Feb 2010 17:37:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28802 The High Court of Madhya Pradesh ruled in favor of the assessee in a case involving the interpretation of deduction of interest under section 36(1)(iii) of the Income-tax Act, 1961. The Court held that the deduction of interest is contingent upon borrowing for business purposes and actual payment of interest, not on the purpose of the borrowed amount. As the Tribunal did not find any failure to meet these conditions, the disallowance based on the absence of interest charged on advances to sister concerns was deemed unjustified. The Court directed the parties to bear their own costs in the reference. Case-Laws Income Tax Fri, 02 Jul 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28802