Interest cannot be disallowed for mere advancing of Interest-free advances to third parties

PCIT Vs Reebok India Company (Delhi High Court)

The Supreme Court in A. Builders Ltd. Versus Commissioner of Income Tax (Appeals) Chandigarh And Another, (2007) 1 SCC 781, had interpreted section 36(1)(iii) of the Act to observe that interest paid on capital borrowed for the purpose of business is to be allowed as a deduction in computing taxable income. The expression “for purposes of business or profession” occurring in Section 36(1

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