https://www.taxtmi.com/caselaws?id=470641 Interest on capital borrowed for a composite manufacturing and leasing business remains deductible under Section 36(1)(iii) where the borrowing was for business purposes when obtained, notwithstanding a later demerger of the particular undertaking. Retention of the leased asset and loan liability supports the continuing business character of the expenditure, and the proviso for asset acquisition and business extension is inapplicable. For withholding tax, Form 26A and an accountant's certificate showing that the payee declared the interest income and paid tax satisfy the substantive conditions for relief under the provisos to Sections 201(1) and 40(a)(ia). Procedural failure to electronically furnish Form 26A does not defeat that relief. en-us Thu, 07 Jul 2022 00:00:00 +0530 Mon, 03 Aug 2026 17:32:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470641 Interest on capital borrowed for a composite manufacturing and leasing business remains deductible under Section 36(1)(iii) where the borrowing was for business purposes when obtained, notwithstanding a later demerger of the particular undertaking. Retention of the leased asset and loan liability supports the continuing business character of the expenditure, and the proviso for asset acquisition and business extension is inapplicable. For withholding tax, Form 26A and an accountant's certificate showing that the payee declared the interest income and paid tax satisfy the substantive conditions for relief under the provisos to Sections 201(1) and 40(a)(ia). Procedural failure to electronically furnish Form 26A does not defeat that relief. Case-Laws Income Tax Thu, 07 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470641