Malwa Cotton Spinning Mills vs Assistant Commissioner Of Income Tax

Whether interest paid on borrowed funds advanced interest-free to a sister concern for non-business purposes is deductible under section 36(1)(iii) of the Income Tax Act 1961 --- Held No. Whether payments of ESI and PF contributions made within a grace period but after the statutory due date are deductible under section 43B --- Held Partly Yes, for payments within grace period. Whether cash payment for air tickets during official travel is disallowable under section 40A(3) read with rule 6DD --- Held No, as it falls under exceptions for genuine transactions.