Sec. 36(1)(iii) deduction couldn’t be disallowed if nexus between interest payment and business is established

INCOME TAX : Where assessee company, engaged in business of real estate, borrowed capital for acquiring a housing finance company by purchasing its shares so as to make funds readily available when required for development of a housing project or to fund any acquisition of real estate, since such investment in shares by assessee was for expansion of its real estate business, interest paid on such capital borrowed was to be allowed as deduction under section 36(1)(iii)

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