Dy. CIT v. GVK Jaipur Expressway (P) Ltd. (2022) 216 TTJ 540 (Jaipur)(Trib)

S. 36(1)(iii) : Interest on borrowed capital-Invested as share application money in another group company-Interest on bank loan not allowable as business expenditure. [S. 37(1)]

Held that the assessee has invested interest-bearing borrowed funds as share application money in another group company which is not a par of its regular business activity or in any way in furtherance of its business and shares not being allotted in three-four years. Interest paid on the bank loan  not allowable as deduction. (AY.2010-11 to 2015-16)