Advance share application money to its wholly owned subsidiary and to a group concern, to acquire promoter/controlling interest and to facilitate its business interest, it could be said that investment was for commercial expediency and assessee would be entitled to deduction of interest paid. (AY.2012-13)
Jayneer infrapower & Multiventures (P.) Ltd. v. DCIT (2019) 176 ITD 15 / 200 TTJ 179(Mum.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital–Investment in group concern–Commercial expediency–Allowable as deduction.