https://www.taxtmi.com/caselaws?id=775606 Interest on borrowed funds remained deductible where the monies were used for the assessee's business, including advances and investments routed through subsidiaries and associates in furtherance of commercial expediency. The absence of operational income in the year did not, by itself, justify disallowance, because allowability under section 36(1)(iii) turns on the purpose of borrowing and actual business use of the funds. On the facts, the Revenue's allegation of diversion for non-business purposes was not accepted, and the interest disallowance was deleted. en-us Mon, 07 Jul 2025 00:00:00 +0530 Mon, 28 Jul 2025 08:27:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775606 Interest on borrowed funds remained deductible where the monies were used for the assessee's business, including advances and investments routed through subsidiaries and associates in furtherance of commercial expediency. The absence of operational income in the year did not, by itself, justify disallowance, because allowability under section 36(1)(iii) turns on the purpose of borrowing and actual business use of the funds. On the facts, the Revenue's allegation of diversion for non-business purposes was not accepted, and the interest disallowance was deleted. Case-Laws Income Tax Mon, 07 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775606