https://www.taxtmi.com/caselaws?id=57910 The Appellate Tribunal ITAT Bombay upheld the deletion of additions made by the AAC regarding the disallowance of interest for the assessment years 1976-77 and 1977-78. The Tribunal found that the borrowings were genuinely used for the assessee's business purposes, as all loans taken were advanced to business customers. Despite the Department's argument that surplus funds were used for personal purposes, the Tribunal emphasized that the test for disallowance of interest on borrowed money is its utilization for business, which was proven in this case. Consequently, the Department's appeals were dismissed due to lack of justification for sustaining the disallowance. en-us Wed, 03 Dec 1980 00:00:00 +0530 Wed, 15 Dec 2010 13:23:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57910 The Appellate Tribunal ITAT Bombay upheld the deletion of additions made by the AAC regarding the disallowance of interest for the assessment years 1976-77 and 1977-78. The Tribunal found that the borrowings were genuinely used for the assessee's business purposes, as all loans taken were advanced to business customers. Despite the Department's argument that surplus funds were used for personal purposes, the Tribunal emphasized that the test for disallowance of interest on borrowed money is its utilization for business, which was proven in this case. Consequently, the Department's appeals were dismissed due to lack of justification for sustaining the disallowance. Case-Laws Income Tax Wed, 03 Dec 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57910