https://www.taxtmi.com/caselaws?id=60432 Interest on borrowed funds remained deductible as business expenditure where the assessee continued integrated business activities after nationalisation, the borrowings were not shown to relate exclusively to the discontinued colliery segment, and the liabilities had not been taken over by the Government. The deduction was allowed under section 36(1)(iii). Unabsorbed depreciation of earlier years was also available for set-off because section 32(2) does not require continuation of the same business or use of the original assets; it is enough that some business was carried on in the year. The set-off was therefore allowed. en-us Tue, 29 Mar 1988 00:00:00 +0530 Wed, 05 Jan 2011 12:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60432 Interest on borrowed funds remained deductible as business expenditure where the assessee continued integrated business activities after nationalisation, the borrowings were not shown to relate exclusively to the discontinued colliery segment, and the liabilities had not been taken over by the Government. The deduction was allowed under section 36(1)(iii). Unabsorbed depreciation of earlier years was also available for set-off because section 32(2) does not require continuation of the same business or use of the original assets; it is enough that some business was carried on in the year. The set-off was therefore allowed. Case-Laws Income Tax Tue, 29 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60432