https://www.taxtmi.com/caselaws?id=64982 Interest earned on short-term bank deposits placed during the construction period was treated as income from other sources because the deposits were not sufficiently connected with the construction activity. Set-off of interest paid on borrowed funds was rejected under section 57(iii) of the Income-tax Act, 1961, since the expenditure was not laid out wholly and exclusively for earning that interest income. Borrowings used for construction, rather than for income-yielding investment, did not create the required nexus, and interest on such borrowings before commencement of business was noted as ordinarily capitalisable. en-us Mon, 11 Jul 1994 00:00:00 +0530 Fri, 11 Feb 2011 14:20:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64982 Interest earned on short-term bank deposits placed during the construction period was treated as income from other sources because the deposits were not sufficiently connected with the construction activity. Set-off of interest paid on borrowed funds was rejected under section 57(iii) of the Income-tax Act, 1961, since the expenditure was not laid out wholly and exclusively for earning that interest income. Borrowings used for construction, rather than for income-yielding investment, did not create the required nexus, and interest on such borrowings before commencement of business was noted as ordinarily capitalisable. Case-Laws Income Tax Mon, 11 Jul 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64982