https://www.taxtmi.com/caselaws?id=766486 Interest on customer advances used in a real estate development business was treated as business expenditure where the funds had a business nexus and were supported by commercial expediency. The record did not establish diversion of borrowed funds for non-business purposes, and even assumed advances to group concerns were found to relate to business activity. On that basis, disallowance of finance charges under Section 36(1)(iii) was held unsustainable, and the addition was deleted in favour of the assessee. en-us Mon, 24 Feb 2025 00:00:00 +0530 Wed, 26 Feb 2025 08:17:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766486 Interest on customer advances used in a real estate development business was treated as business expenditure where the funds had a business nexus and were supported by commercial expediency. The record did not establish diversion of borrowed funds for non-business purposes, and even assumed advances to group concerns were found to relate to business activity. On that basis, disallowance of finance charges under Section 36(1)(iii) was held unsustainable, and the addition was deleted in favour of the assessee. Case-Laws Income Tax Mon, 24 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766486