Topic

Section 36(1)(iii)

2 articlesLatest February 2026

Feb 5, 2026|Income Tax Appellate Tribunal

Interest on Borrowings for Strategic Acquisition Allowable as Business Expense | Section 36(1)(iii) : Income Tax Appellate Tribunal

ITAT Mumbai holds that interest on borrowings used to acquire controlling interest in a foreign subsidiary engaged in the same business is allowable under Section 36(1)(iii) as business expenditure.

Interest Expense Cannot Be Disallowed If Underlying Loan Genuineness Already Established | Income Tax Act, Section 36(1)(iii) & 69A : Income Tax Appellate Tribunal

Case Law Analysis

Jan 30, 2026|Income Tax Appellate Tribunal

Interest Expense Cannot Be Disallowed If Underlying Loan Genuineness Already Established | Income Tax Act, Section 36(1)(iii) & 69A : Income Tax Appellate Tribunal

ITAT Delhi holds that once loan genuineness is accepted in prior years, interest on carry-forward loans cannot be disallowed under Section 36(1)(iii) or treated as unexplained income under Section 69A.

Section 36(1)(iii)

Interest on Borrowings for Strategic Acquisition Allowable as Business Expense | Section 36(1)(iii) : Income Tax Appellate Tribunal

Interest Expense Cannot Be Disallowed If Underlying Loan Genuineness Already Established | Income Tax Act, Section 36(1)(iii) & 69A : Income Tax Appellate Tribunal

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