In absence of business nexus, no interest deduction allowed u/s 36(1)(iii) for leveraged acquisition
The Assessee1 is engaged in the business of manufacturing and sale of inorganic chemicals, fertilizers, and bio‑fuels.
The Assessee raised funds through External Commercial Borrowings (‘ECBs’) and Non‑Convertible Debentures (‘NCDs’) and deployed the proceeds towards investment in the share capital of its overseas subsidiary companies.
