https://www.taxtmi.com/caselaws?id=797788 Genuine business activity is required for a deductible business loss; mirror-image group agreements, year-end journal entries, and no demonstrated services, infrastructure, fund movement, or commercial substance support denial of the loss. Interest on borrowings used to acquire shares is deductible only where a business nexus and commercial expediency are established; absence of a demonstrated commercial interest justified disallowance. Disallowance of expenditure relating to exempt income cannot exceed verified exempt income for the relevant year, as the 2022 Explanation operates prospectively. For share-capital credits, identity alone is insufficient: unexplained circular group transfers require fresh examination of transaction genuineness. en-us Mon, 24 Aug 2026 00:00:00 +0530 Thu, 27 Aug 2026 08:28:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797788 Genuine business activity is required for a deductible business loss; mirror-image group agreements, year-end journal entries, and no demonstrated services, infrastructure, fund movement, or commercial substance support denial of the loss. Interest on borrowings used to acquire shares is deductible only where a business nexus and commercial expediency are established; absence of a demonstrated commercial interest justified disallowance. Disallowance of expenditure relating to exempt income cannot exceed verified exempt income for the relevant year, as the 2022 Explanation operates prospectively. For share-capital credits, identity alone is insufficient: unexplained circular group transfers require fresh examination of transaction genuineness. Case-Laws Income Tax Mon, 24 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797788