https://www.taxtmi.com/caselaws?id=777097 Whether interest paid on bank loans used to fund advances to sister concerns is deductible against interest received hinges on whether lending constituted the assessee's business and when business commenced. The court found that commencement includes preparatory stages and that lending to group concerns was within the company's objects in the memorandum and consistent with subsequent assessment years; therefore interest paid is allowable as a deduction against interest income. The tribunal's finding that such lending was fortuitous was set aside to align the 1992-93 assessment with later years where identical transactions were treated as business income and related interest expense was allowed. en-us Thu, 21 Aug 2025 00:00:00 +0530 Mon, 09 Feb 2026 16:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777097 Whether interest paid on bank loans used to fund advances to sister concerns is deductible against interest received hinges on whether lending constituted the assessee's business and when business commenced. The court found that commencement includes preparatory stages and that lending to group concerns was within the company's objects in the memorandum and consistent with subsequent assessment years; therefore interest paid is allowable as a deduction against interest income. The tribunal's finding that such lending was fortuitous was set aside to align the 1992-93 assessment with later years where identical transactions were treated as business income and related interest expense was allowed. Case-Laws Income Tax Thu, 21 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777097