The Tribunal held that Section 36(1)(iii) allows deduction of the amount of interest paid in respect of capital borrowed for the purpose of business or profession. As per section 36(1)(iii) of the Act, any interest expense which has been incurred for the purpose of business is allowed as an expenditure under the head Business and Profession irrespective whether the assessee has generated any corresponding income or not. The AO himself had allowed the same for earlier year and thus following the rule of consistency and on merits of the case the disallowance was deleted. (AY.2013-14)