https://www.taxtmi.com/caselaws?id=795501 Interest expenditure under section 36(1)(iii) is not disallowable where interest-free advances are supported by sufficient own or interest-free funds, borrowed funds are not shown to have been diverted for non-business purposes, and lending arrangements reflect commercial expediency. Net interest income and higher lending rates may support the absence of such diversion. Section 14A read with Rule 8D does not support a disallowance for a pre-amendment year in which no exempt income was earned. The Finance Act 2022 amendment to section 14A applies from assessment year 2022-23 and is not retrospective for earlier years. en-us Tue, 16 Jun 2026 00:00:00 +0530 Thu, 23 Jul 2026 08:42:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795501 Interest expenditure under section 36(1)(iii) is not disallowable where interest-free advances are supported by sufficient own or interest-free funds, borrowed funds are not shown to have been diverted for non-business purposes, and lending arrangements reflect commercial expediency. Net interest income and higher lending rates may support the absence of such diversion. Section 14A read with Rule 8D does not support a disallowance for a pre-amendment year in which no exempt income was earned. The Finance Act 2022 amendment to section 14A applies from assessment year 2022-23 and is not retrospective for earlier years. Case-Laws Income Tax Tue, 16 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795501