https://www.taxtmi.com/caselaws?id=775606 The ITAT Hyderabad allowed the appellant's appeal, holding that interest paid on loans borrowed and utilized for business purposes, including through subsidiaries and associates, is deductible under section 36(1)(iii) of the Income Tax Act, 1961. The tribunal rejected the Assessing Officer's disallowance based on the diversion of funds, affirming that if loans are advanced in the ordinary course of business for commercial expediency, interest cannot be disallowed. It was further held that expenditure incurred wholly and exclusively for business is allowable even if no income is earned in that year. Consequently, the appellant was entitled to claim the interest deduction on borrowed loans. en-us Mon, 07 Jul 2025 00:00:00 +0530 Mon, 28 Jul 2025 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775606 The ITAT Hyderabad allowed the appellant's appeal, holding that interest paid on loans borrowed and utilized for business purposes, including through subsidiaries and associates, is deductible under section 36(1)(iii) of the Income Tax Act, 1961. The tribunal rejected the Assessing Officer's disallowance based on the diversion of funds, affirming that if loans are advanced in the ordinary course of business for commercial expediency, interest cannot be disallowed. It was further held that expenditure incurred wholly and exclusively for business is allowable even if no income is earned in that year. Consequently, the appellant was entitled to claim the interest deduction on borrowed loans. Case-Laws Income Tax Mon, 07 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775606