https://www.taxtmi.com/caselaws?id=472208 Interest paid on unsecured loans from directors for business purposes is deductible under Section 36(1)(iii) where no diversion of borrowed funds to non-business use is established. Expenditure specifically claimed under that provision cannot be disallowed under Section 37(1). An overdraft secured against a director's fixed deposits did not, on the relevant facts, establish a breach of deposit rules. The interest disallowance was therefore deleted and the expenditure allowed. en-us Mon, 21 Apr 2025 00:00:00 +0530 Sun, 04 Oct 2026 18:35:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472208 Interest paid on unsecured loans from directors for business purposes is deductible under Section 36(1)(iii) where no diversion of borrowed funds to non-business use is established. Expenditure specifically claimed under that provision cannot be disallowed under Section 37(1). An overdraft secured against a director's fixed deposits did not, on the relevant facts, establish a breach of deposit rules. The interest disallowance was therefore deleted and the expenditure allowed. Case-Laws Income Tax Mon, 21 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472208