Taxpayer's Interest-Free Loan to Related Company Raises Questions of Commercial Expediency and Business Use.

Interest expense - The borrowed amount in question was not utilized by the assessee in its own business, but had been advanced as interest-free loan to its sister-concern and later converted into share capital. - What is relevant is whether the assessee advanced such amount to its sister-concern as a measure of commercial expediency. - AT .....

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