https://www.taxtmi.com/caselaws?id=64057 The Appellate Tribunal held that the interest income of Rs. 2,64,279 earned by the assessee-company was assessable. The Tribunal emphasized that interest earned on borrowed funds deposited in banks constituted assessable income, while interest paid on such borrowings was not deductible. Despite conflicting Tribunal decisions, the Appellate Tribunal sided with previous High Court rulings, overturning the Commissioner's decision and restoring the Income Tax Officer's assessment. This case underscores the necessity of establishing a direct link between expenditure and income for tax assessment purposes. en-us Sat, 31 Mar 1984 00:00:00 +0530 Thu, 03 Feb 2011 14:42:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64057 The Appellate Tribunal held that the interest income of Rs. 2,64,279 earned by the assessee-company was assessable. The Tribunal emphasized that interest earned on borrowed funds deposited in banks constituted assessable income, while interest paid on such borrowings was not deductible. Despite conflicting Tribunal decisions, the Appellate Tribunal sided with previous High Court rulings, overturning the Commissioner's decision and restoring the Income Tax Officer's assessment. This case underscores the necessity of establishing a direct link between expenditure and income for tax assessment purposes. Case-Laws Income Tax Sat, 31 Mar 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64057