https://www.taxtmi.com/caselaws?id=466951 Interest on borrowed funds used to invest in subsidiaries is deductible as business expenditure under Section 36(1)(iii) where the investments were pre-existing, the subsidiaries conduct activities proximate to the assessee's business, and there was no fresh diversion of funds; the expenditure satisfies the wider "for the purpose of business" test and may reflect strategic business planning. Where investments are aimed primarily at earning dividends, any limitation would arise through disallowance rules applied to exempt income to that extent, not by denying Section 36(1)(iii) treatment. en-us Mon, 24 Feb 2025 00:00:00 +0530 Wed, 25 Feb 2026 12:49:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466951 Interest on borrowed funds used to invest in subsidiaries is deductible as business expenditure under Section 36(1)(iii) where the investments were pre-existing, the subsidiaries conduct activities proximate to the assessee's business, and there was no fresh diversion of funds; the expenditure satisfies the wider "for the purpose of business" test and may reflect strategic business planning. Where investments are aimed primarily at earning dividends, any limitation would arise through disallowance rules applied to exempt income to that extent, not by denying Section 36(1)(iii) treatment. Case-Laws Income Tax Mon, 24 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466951