https://www.taxtmi.com/caselaws?id=58308 The Tribunal upheld the disallowance of interest payments made to both M/s. P.R. Enterprises and Bombay Mercantile Bank for the respective assessment years. The decision emphasized the necessity of establishing a direct nexus between borrowed funds and business purposes to claim deductions under Section 37 of the Income Tax Act. Despite arguments by the assessee's counsel, the Tribunal found insufficient evidence to support the deduction claims, resulting in the dismissal of the appeals and affirmation of the disallowances. en-us Mon, 26 Nov 1990 00:00:00 +0530 Sat, 18 Dec 2010 13:48:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58308 The Tribunal upheld the disallowance of interest payments made to both M/s. P.R. Enterprises and Bombay Mercantile Bank for the respective assessment years. The decision emphasized the necessity of establishing a direct nexus between borrowed funds and business purposes to claim deductions under Section 37 of the Income Tax Act. Despite arguments by the assessee's counsel, the Tribunal found insufficient evidence to support the deduction claims, resulting in the dismissal of the appeals and affirmation of the disallowances. Case-Laws Income Tax Mon, 26 Nov 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58308