CIT v. KEC International Ltd. (2020) 269 Taxman 275 (Mad.)(HC)

S. 36(1)(iii) : Interest on borrowed capital Investment in group companies for strategic business purpose-Allowable as deduction.

Dismissing the appeal of the revenue the Court held that investment made was for strategic business purpose because companies were promoted as special purpose companies to strengthen and to promote its existing business by combining different business segments.-Following previous judgment, deduction was to be allowed for current assessment year.  (AY.  2004-05)