Dismissing the appeal of the revenue the Court held that the setting up of a joint venture company with a Central Government agency and a State Government entity was not beyond the purview of the business operations of the assessee. In such circumstances, the interest paid in respect of the funds borrowed by the assessee had to be regarded as a payment made for the purpose of the business of the assessee and a permissible deduction under S. 36(1)(iii)  of the Act. (AY. 2000-01, 2003 -04)