https://www.taxtmi.com/caselaws?id=467724 Interest on borrowed funds used to acquire shares for securing controlling interest and expanding an existing business was treated as business expenditure, not as investment outlay. Applying the jurisdictional HC's approach, the tribunal accepted that the share acquisition was a commercially expedient business decision made to support control, development and expansion of operations. The borrowing was therefore regarded as for business purposes, making the interest deductible under section 36(1)(iii) of the Income-tax Act, 1961. The disallowance was deleted in favour of the assessee. en-us Fri, 29 Apr 2022 00:00:00 +0530 Tue, 31 Mar 2026 13:18:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467724 Interest on borrowed funds used to acquire shares for securing controlling interest and expanding an existing business was treated as business expenditure, not as investment outlay. Applying the jurisdictional HC's approach, the tribunal accepted that the share acquisition was a commercially expedient business decision made to support control, development and expansion of operations. The borrowing was therefore regarded as for business purposes, making the interest deductible under section 36(1)(iii) of the Income-tax Act, 1961. The disallowance was deleted in favour of the assessee. Case-Laws Income Tax Fri, 29 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467724