https://www.taxtmi.com/caselaws?id=64528 The Tribunal rejected the assessee's claim for deductibility of interest payment on bank borrowings against interest earned from FDRs, citing lack of correlation between the purpose of expenditure and income earned. It upheld its decision despite allowing a similar claim in the previous year, emphasizing the need to follow Supreme Court rulings. The Tribunal declined to refer the matter to a Special Bench, asserting that the issue was settled by the Supreme Court. Dissenting, a member suggested referring the deductibility issue to the High Court for review as it involved a mixed question of fact and law. Ultimately, the Tribunal decided to refer the matter to the High Court for consideration. en-us Mon, 04 Jun 1990 00:00:00 +0530 Tue, 08 Feb 2011 13:43:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64528 The Tribunal rejected the assessee's claim for deductibility of interest payment on bank borrowings against interest earned from FDRs, citing lack of correlation between the purpose of expenditure and income earned. It upheld its decision despite allowing a similar claim in the previous year, emphasizing the need to follow Supreme Court rulings. The Tribunal declined to refer the matter to a Special Bench, asserting that the issue was settled by the Supreme Court. Dissenting, a member suggested referring the deductibility issue to the High Court for review as it involved a mixed question of fact and law. Ultimately, the Tribunal decided to refer the matter to the High Court for consideration. Case-Laws Income Tax Mon, 04 Jun 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64528