https://www.taxtmi.com/caselaws?id=798227 Buy-back of a company's own shares below fair market value, followed by statutorily required extinguishment, constitutes a reduction of share capital rather than receipt of property for section 56(2)(x). Interest expenditure is not disallowable under section 36(1)(iii) where interest-free own funds exceed advances, borrowings lack nexus to those advances, and mixed funds alone cannot justify a proportionate disallowance. Loans written off qualify as bad debts under sections 36(1)(vii) and 36(2)(i) when they arise in the ordinary course of an organised money-lending business and are actually written off; a lending licence is not determinative. en-us Mon, 31 Aug 2026 00:00:00 +0530 Thu, 03 Sep 2026 08:20:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798227 Buy-back of a company's own shares below fair market value, followed by statutorily required extinguishment, constitutes a reduction of share capital rather than receipt of property for section 56(2)(x). Interest expenditure is not disallowable under section 36(1)(iii) where interest-free own funds exceed advances, borrowings lack nexus to those advances, and mixed funds alone cannot justify a proportionate disallowance. Loans written off qualify as bad debts under sections 36(1)(vii) and 36(2)(i) when they arise in the ordinary course of an organised money-lending business and are actually written off; a lending licence is not determinative. Case-Laws Income Tax Mon, 31 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798227