https://www.taxtmi.com/caselaws?id=798844 Interest on borrowings used to acquire shares in a subsidiary qualifies as deductible business expenditure where the acquisition serves business expansion and commercial expediency. Increasing shareholding in an entity operating in the same line of business, followed by its merger and expansion of multiplex resources, showed that the dominant purpose was securing control and maximising business resources rather than earning dividend income. The interest was therefore allowable under section 36(1)(iii) of the Income-tax Act. en-us Fri, 14 Aug 2026 00:00:00 +0530 Sat, 12 Sep 2026 08:41:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798844 Interest on borrowings used to acquire shares in a subsidiary qualifies as deductible business expenditure where the acquisition serves business expansion and commercial expediency. Increasing shareholding in an entity operating in the same line of business, followed by its merger and expansion of multiplex resources, showed that the dominant purpose was securing control and maximising business resources rather than earning dividend income. The interest was therefore allowable under section 36(1)(iii) of the Income-tax Act. Case-Laws Income Tax Fri, 14 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798844