https://www.taxtmi.com/caselaws?id=117078 Interest earned on fixed deposits could be set off against interest paid on bank loans for recomputing the deduction under section 80HHC where the loan facility was obtained subject to furnishing those fixed deposits, establishing a direct nexus between the deposit interest and the borrowing cost. The Tribunal noted that earlier decisions had allowed such adjustment on similar facts and distinguished cases lacking that direct connection. The set-off was held permissible, and the deduction was to be recomputed in favour of the assessee. en-us Mon, 03 Mar 2003 00:00:00 +0530 Wed, 20 Jun 2012 11:46:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117078 Interest earned on fixed deposits could be set off against interest paid on bank loans for recomputing the deduction under section 80HHC where the loan facility was obtained subject to furnishing those fixed deposits, establishing a direct nexus between the deposit interest and the borrowing cost. The Tribunal noted that earlier decisions had allowed such adjustment on similar facts and distinguished cases lacking that direct connection. The set-off was held permissible, and the deduction was to be recomputed in favour of the assessee. Case-Laws Income Tax Mon, 03 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117078