https://www.taxtmi.com/caselaws?id=798099 Interest on borrowed capital is deductible where strategic investments to acquire or retain control in group companies form part of the taxpayer's business and are commercially expedient. Business purpose is not negated by low operational receipts or dividend income being separately classified. Where interest-free funds exceed the relevant investments or advances, those investments may be presumed to have been funded from interest-free sources without requiring a direct fund-wise nexus. Each assessment year remains independently examinable; acceptance of similar claims in other years or for group entities does not prevent scrutiny in the relevant year. en-us Mon, 31 Aug 2026 00:00:00 +0530 Wed, 02 Sep 2026 08:30:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798099 Interest on borrowed capital is deductible where strategic investments to acquire or retain control in group companies form part of the taxpayer's business and are commercially expedient. Business purpose is not negated by low operational receipts or dividend income being separately classified. Where interest-free funds exceed the relevant investments or advances, those investments may be presumed to have been funded from interest-free sources without requiring a direct fund-wise nexus. Each assessment year remains independently examinable; acceptance of similar claims in other years or for group entities does not prevent scrutiny in the relevant year. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798099