https://www.taxtmi.com/caselaws?id=59168 The Tribunal upheld the disallowance of Rs. 19,17,643 in interest payments, finding that the advances to the subsidiary were made from borrowed funds, not profits, and the separate bank account arrangement did not alter this fact. The Tribunal emphasized that interest on borrowed capital is deductible only when used for business purposes, not for interest-free advances. The appeal was dismissed, affirming the disallowance and emphasizing the need for sufficient non-interest-bearing funds for such transactions, in line with established legal principles. en-us Thu, 12 Sep 1996 00:00:00 +0530 Sat, 25 Dec 2010 13:21:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59168 The Tribunal upheld the disallowance of Rs. 19,17,643 in interest payments, finding that the advances to the subsidiary were made from borrowed funds, not profits, and the separate bank account arrangement did not alter this fact. The Tribunal emphasized that interest on borrowed capital is deductible only when used for business purposes, not for interest-free advances. The appeal was dismissed, affirming the disallowance and emphasizing the need for sufficient non-interest-bearing funds for such transactions, in line with established legal principles. Case-Laws Income Tax Thu, 12 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59168