https://www.taxtmi.com/caselaws?id=771844 Interest on unsecured borrowings was held to be allowable under section 36(1)(iii) where the assessee showed that the funds were reflected in the balance sheet and deployed in business through trade creditors and sundry debtors. No specific diversion of the borrowed funds for personal use or capital investment was established, and the record supported business expansion and commercial expediency. In the absence of any pinpointed finding of non-business use, the disallowance was treated as conjectural and the addition was deleted in favour of the assessee. en-us Mon, 17 Mar 2025 00:00:00 +0530 Sat, 31 May 2025 08:47:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771844 Interest on unsecured borrowings was held to be allowable under section 36(1)(iii) where the assessee showed that the funds were reflected in the balance sheet and deployed in business through trade creditors and sundry debtors. No specific diversion of the borrowed funds for personal use or capital investment was established, and the record supported business expansion and commercial expediency. In the absence of any pinpointed finding of non-business use, the disallowance was treated as conjectural and the addition was deleted in favour of the assessee. Case-Laws Income Tax Mon, 17 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771844