https://www.taxtmi.com/caselaws?id=151835 Interest on borrowings used to acquire shares was held not deductible where the resulting dividend income was exempt. Section 57(iii) allows only expenditure incurred wholly and exclusively for income chargeable under the head "Income from other sources", while section 14A bars deduction of expenditure incurred in relation to income that does not form part of total income. The argument that dividend was indirectly taxed at the company level did not override the statutory prohibition, and a possible future capital gains claim was irrelevant for the year in question. The disallowance of the interest expenditure was therefore sustained. en-us Wed, 19 Feb 2003 00:00:00 +0530 Mon, 17 Jun 2013 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151835 Interest on borrowings used to acquire shares was held not deductible where the resulting dividend income was exempt. Section 57(iii) allows only expenditure incurred wholly and exclusively for income chargeable under the head "Income from other sources", while section 14A bars deduction of expenditure incurred in relation to income that does not form part of total income. The argument that dividend was indirectly taxed at the company level did not override the statutory prohibition, and a possible future capital gains claim was irrelevant for the year in question. The disallowance of the interest expenditure was therefore sustained. Case-Laws Income Tax Wed, 19 Feb 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151835