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2002 (10) TMI 56 - CALCUTTA HIGH COURTInterest on borrowed capital - Tribunal came to the conclusion that nothing had been brought on record to show why the assessee-firm should have kept its money blocked with Tropical Fruits without charging any interest. Since the partners of the assessee were interested in Tropical Fruits, interest on borrowed capital was disallowed to the extent it lay with Tropical Fruits without earning any interest there. - The law here being well-settled, as to what is borrowing for business purposes, the facts as given above, in our opinion, could only lead to one conclusion of law, which is that the borrowings by the assessee kept as application money in Tropical Fruits were for use of the money for the assessee's business and thus the only conclusion of law would be that the interest thereon was deductible as revenue expense by the assessee. - The order of the Tribunal is set aside
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