Taxpayer Must Prove Borrowed Funds Used for Business to Deduct Interest; Interest-Free Advances Not Automatically Eligible.

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Full Text of the Document

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....Disallowance of interest made or borrowed funds - Even before us also, general submissions have been made that the amounts have been utilized for commercial expediency purposes. It is for the assessee to prove that it is a part of commercial expediency and such interest free advance are given for the purpose of business and profession and if the assessee fails to satisfy then, the assessee cannot escape from such disallowance of interest expenditure - AT....