interest earned on untilised borrowed capital

[ANIL JHUNJHUNWALA]

pl give me any suprme court judgment where assess was allowed  to off set  interest earned from  borrowed capital and interets paid on term and cc loan  as preoperative expenses  . i have seen tuticorn alkali case 1997 suprmecourt where tax have been levied on interets earned and interest paid  was capitalised . pl help me to find case in assesse favour

AI Summary

Supreme Court ruling allows offsetting interest earned from borrowed capital against interest paid as preoperative expenses under Section 57. A participant in a discussion forum sought guidance on a Supreme Court judgment allowing the offsetting of interest earned from borrowed capital against interest paid on loans as preoperative expenses. They referenced the Tuticorin Alkali case, where interest earned was taxed, and interest paid was capitalized. A respondent advised that if a direct connection between the interest earned and spent is established, a deduction under Section 57 could be claimed, which permits expenses incurred to earn the corresponding income.