Interest on loans not allowable if loan utilized to finance sister concern with no direct or indirect benefit to assessee

Brief of the case: The ITAT Chandigarh in the case of Late Sh.Jagat Singh vs. ITO held that the interest paid by assessee on borrowings not allowable as the same were used to finance the sister concern when the crux of transaction results that no direct or indirect benefit accrues to assessee on such loans advanced. Such loans being used to finance sister concern is out of commercial expediency, interest paid thereon not deductible u/s 36(1)(iii). Facts of the case: The assessee proprietor of a firm dealing in manufacturing and trading of shoes. The return for the assessment year 2007-08 w...