https://www.taxtmi.com/caselaws?id=801179 Business deductions for motor vehicles registered in a director's name require records demonstrating exclusive company use; absent such evidence, a 25% disallowance for personal use applies, notwithstanding treatment in an earlier assessment. Interest on borrowings remains deductible where the borrowings are used for business purposes and no nexus is established with interest-free advances, particularly where those advances are funded from interest-free sources. Rent for director-provided accommodation may be commercially expedient and deductible, while the director's perquisite is separately taxable. Bank penal interest for delayed loan instalments is compensatory, rather than payment for an offence or prohibited purpose, and is allowable under section 37(1). en-us Tue, 06 Oct 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801179 Business deductions for motor vehicles registered in a director's name require records demonstrating exclusive company use; absent such evidence, a 25% disallowance for personal use applies, notwithstanding treatment in an earlier assessment. Interest on borrowings remains deductible where the borrowings are used for business purposes and no nexus is established with interest-free advances, particularly where those advances are funded from interest-free sources. Rent for director-provided accommodation may be commercially expedient and deductible, while the director's perquisite is separately taxable. Bank penal interest for delayed loan instalments is compensatory, rather than payment for an offence or prohibited purpose, and is allowable under section 37(1). Case-Laws Income Tax Tue, 06 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801179