2009 (9) TMI 946 - HC - Income Tax

Summary

The respondent-assessee borrowed funds for business purposes, paid interest, and claimed it as a business expenditure. The Assessing Officer disallowed the claim, but it was later allowed by higher authorities. The interest paid on the borrowed funds was considered a legitimate deduction under section 36 of the Income Tax Act, 1961. The appeal was dismissed as no question of law arose.