High Court Upholds Disallowance of Interest Deduction on Loan for Land Purchase u/s 36(1)(iii) of Income Tax Act.

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....Deduction of interest paid for the borrowed amount used for business purpose - Loan taken from Bank given to Holding company as interest free Advance - Addition u/s 36(1)(iii) - The AO found that the holding Company had borrowed loans from Banks and there was no occasion rather need for the holding Company to take advances from the assessee for the purpose of purchase of the land - Additions confirmed. - HC....