https://www.taxtmi.com/caselaws?id=793537 Interest expenditure was held allowable in full where documentary evidence showed that the borrowed funds were wholly used to advance a loan, and the sum later received from the borrower was salary arrears rather than loan repayment. On that factual basis, the premise for a proportionate disallowance fell away, and no disallowance of interest under section 57(iii) remained justified. The sustained disallowance was deleted because reliable records, including Form 26AS, Form 16 and the ledger account, displaced the contrary inference and established the income-yielding use of the borrowed funds. en-us Thu, 21 May 2026 00:00:00 +0530 Wed, 17 Jun 2026 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793537 Interest expenditure was held allowable in full where documentary evidence showed that the borrowed funds were wholly used to advance a loan, and the sum later received from the borrower was salary arrears rather than loan repayment. On that factual basis, the premise for a proportionate disallowance fell away, and no disallowance of interest under section 57(iii) remained justified. The sustained disallowance was deleted because reliable records, including Form 26AS, Form 16 and the ledger account, displaced the contrary inference and established the income-yielding use of the borrowed funds. Case-Laws Income Tax Thu, 21 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793537