HC justifies addition of interest related to transaction with related party done with intention of deliberate tax evasion

Yenepoya Resins & Chemicals Vs DCIT (Karnataka High Court) The issue under consideration is whether in law, the Tribunal is justified in rejecting the claim under section 36(1)(iii) of the Appellant towards the payment of interest on borrowing when the genuineness of such borrowings and the utilization of such amounts in the business is not disputed? In order to attract the applicability of the aforesaid provision, three conditions are required to be satisfied namely that the money must have been borrowed by the assessee, it must have been borrowed for the purpose of business and the asses...