Dismissing the appeal of the revenue the Court held that borrowed funds not diverted to sister concerns. Allowable as deduction. Followed S. A. Builders v. CIT (A) (2007) 288 ITR 1 (SC) (AY.2008-09)
CIT v. GMR Energy Ltd. (2021)437 ITR 240 (Karn.)(HC)
S. 36(1)(iii) : Interest on borrowed capital-Commercial expediency-Borrowed funds not diverted to sister concerns-Allowable as deduction. [S. 37(1)]