Interest on borrowed funds allowable u/s 36(1)(iii) as funds used wholly and exclusively for business

Vodafone India Ltd. Vs ACIT (ITAT Mumbai) ITAT Mumbai held that once it is established that the funds are used wholly and exclusively for the purpose of business interest paid on such borrowed funds is allowed u/s. 36(1)(iii) of the Income Tax Act. Facts- Assessee contested disallowance of interest on loans advanced to the subsidiaries by the assessee. It was submitted that the assessee and its subsidiaries are engaged in the business of providing mobile telecom services PAN India. There is significant inter-dependance between the assessee and its group companies for providing cellular service...