https://www.taxtmi.com/caselaws?id=465044 ITAT Chennai dismissed the revenue's appeal, upholding the CIT(A)'s order allowing deduction of interest under S.36(1)(iii). The assessee had borrowed funds and invested in shares of a group company engaged in the same line of jewellery business. On facts, the investment was found to be strategic and driven by commercial expediency, conferring substantial business advantage. The Tribunal held that interest on borrowed capital used for such commercially expedient, strategic investments in group companies constitutes allowable business expenditure, and the AO's blanket disallowance of interest was unjustified. en-us Fri, 12 Jul 2024 00:00:00 +0530 Tue, 02 Dec 2025 10:46:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465044 ITAT Chennai dismissed the revenue's appeal, upholding the CIT(A)'s order allowing deduction of interest under S.36(1)(iii). The assessee had borrowed funds and invested in shares of a group company engaged in the same line of jewellery business. On facts, the investment was found to be strategic and driven by commercial expediency, conferring substantial business advantage. The Tribunal held that interest on borrowed capital used for such commercially expedient, strategic investments in group companies constitutes allowable business expenditure, and the AO's blanket disallowance of interest was unjustified. Case-Laws Income Tax Fri, 12 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465044