https://www.taxtmi.com/caselaws?id=789324 Interest expenditure was not disallowed under Section 36(1)(iii) because the long-term advances were made in earlier years for purchase of industrial property, while the borrowed funds carrying interest were obtained later. The Tribunal found no nexus between the interest-bearing borrowings and the advances, and held that the assessee's own funds and surrounding facts, including the dispute with the seller, supported the business character of the advances. The disallowance rested on an incorrect assumption that the advances were unrelated to business, so it was deleted in favour of the assessee. en-us Fri, 27 Feb 2026 00:00:00 +0530 Tue, 07 Apr 2026 07:48:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789324 Interest expenditure was not disallowed under Section 36(1)(iii) because the long-term advances were made in earlier years for purchase of industrial property, while the borrowed funds carrying interest were obtained later. The Tribunal found no nexus between the interest-bearing borrowings and the advances, and held that the assessee's own funds and surrounding facts, including the dispute with the seller, supported the business character of the advances. The disallowance rested on an incorrect assumption that the advances were unrelated to business, so it was deleted in favour of the assessee. Case-Laws Income Tax Fri, 27 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789324