https://www.taxtmi.com/caselaws?id=467567 Interest on borrowed funds remained deductible where advances to sister concerns were made pursuant to a demerger and for commercial expediency. The governing test was whether the borrowing was used for business purposes, and mere benefit to related concerns did not justify disallowance. As there was no allegation that the recipient entities or their directors used the funds for personal benefit, the borrowed money was not treated as diverted for non-business purposes, and the interest expenditure was allowable. en-us Fri, 27 Nov 2015 00:00:00 +0530 Tue, 24 Mar 2026 16:07:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467567 Interest on borrowed funds remained deductible where advances to sister concerns were made pursuant to a demerger and for commercial expediency. The governing test was whether the borrowing was used for business purposes, and mere benefit to related concerns did not justify disallowance. As there was no allegation that the recipient entities or their directors used the funds for personal benefit, the borrowed money was not treated as diverted for non-business purposes, and the interest expenditure was allowable. Case-Laws Income Tax Fri, 27 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467567