Cit vs Padmini Packaging (P) Ltd. on 4 April, 2006
- CIT vs. Padmani Packaging (P) Ltd.: 155 Taxman 268 (Del.)
Applying the aforesaid principle, it has been held by the
Courts that where borrowed funds have been used for the
purposes of business, interest thereon is allowable deduction in
terms of section 36(1)(iii) of the Act; it is not open to the Revenue
to contend that since the assessee had interest free funds of its
own, there was no necessity to borrow money: