https://www.taxtmi.com/caselaws?id=795195 Interest expenditure attributable to investments in subsidiary companies cannot be disallowed or capitalised where the assessee's share capital and accumulated reserves substantially exceed its investments. When sufficient interest-free own funds coexist with borrowings, investments are presumed to have been made from those interest-free funds; the assessee need not maintain separately identifiable pools of own and borrowed funds. On these principles, the interest disallowance and capitalisation were considered unsustainable and liable to be deleted. en-us Mon, 22 Jun 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795195 Interest expenditure attributable to investments in subsidiary companies cannot be disallowed or capitalised where the assessee's share capital and accumulated reserves substantially exceed its investments. When sufficient interest-free own funds coexist with borrowings, investments are presumed to have been made from those interest-free funds; the assessee need not maintain separately identifiable pools of own and borrowed funds. On these principles, the interest disallowance and capitalisation were considered unsustainable and liable to be deleted. Case-Laws Income Tax Mon, 22 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795195