https://www.taxtmi.com/caselaws?id=767540 The ITAT Mumbai dismissed the Revenue's appeal regarding disallowance of interest expenses. The assessee company invested in compulsory convertible debentures of an associated company, increasing its shareholding from 95.30% to 99.76%. The tribunal held that investment made to acquire controlling interest in another company constitutes business purpose. The assessee demonstrated that the investment was funded through non-interest bearing funds, not borrowed funds. The CIT(A)'s decision allowing the interest deduction was upheld, following precedent that investments for acquiring controlling stakes serve legitimate business purposes. en-us Mon, 03 Mar 2025 00:00:00 +0530 Thu, 20 Mar 2025 08:21:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767540 The ITAT Mumbai dismissed the Revenue's appeal regarding disallowance of interest expenses. The assessee company invested in compulsory convertible debentures of an associated company, increasing its shareholding from 95.30% to 99.76%. The tribunal held that investment made to acquire controlling interest in another company constitutes business purpose. The assessee demonstrated that the investment was funded through non-interest bearing funds, not borrowed funds. The CIT(A)'s decision allowing the interest deduction was upheld, following precedent that investments for acquiring controlling stakes serve legitimate business purposes. Case-Laws Income Tax Mon, 03 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767540