https://www.taxtmi.com/caselaws?id=773511 ITAT Mumbai allowed assessee's claim for interest deduction under Section 36(1)(iii) on funds borrowed for business purposes. The assessee had raised debt capital via debentures to purchase land, with a 7-day interim period before payment. During this period, funds were invested in mutual funds and fixed deposits. The tribunal held this constituted adventure in nature of business under Section 2(13), as investments were made for commercial expediency to offset interest costs. However, the tribunal directed partial disallowance under Section 14A for interest expenses attributable to exempt dividend income earned during the interim period. en-us Wed, 11 Jun 2025 00:00:00 +0530 Tue, 24 Jun 2025 08:25:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773511 ITAT Mumbai allowed assessee's claim for interest deduction under Section 36(1)(iii) on funds borrowed for business purposes. The assessee had raised debt capital via debentures to purchase land, with a 7-day interim period before payment. During this period, funds were invested in mutual funds and fixed deposits. The tribunal held this constituted adventure in nature of business under Section 2(13), as investments were made for commercial expediency to offset interest costs. However, the tribunal directed partial disallowance under Section 14A for interest expenses attributable to exempt dividend income earned during the interim period. Case-Laws Income Tax Wed, 11 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773511