https://www.taxtmi.com/caselaws?id=204444 The courts upheld the decision of the lower authorities, allowing the deduction of interest paid on loans under section 57(iii) of the Income-tax Act. The case involved an assessee engaged in the export of jewellery who used borrowed funds to create Fixed Deposit Receipts (FDRs) and earned interest. The courts found a direct link between the interest earned on FDRs and the interest paid on loans, which were utilized for the specific purpose of investing in FDRs. The borrowing aligned with government policies and lower interest rates, justifying the treatment of interest paid as an expenditure. Consequently, the appeals were dismissed. en-us Mon, 13 Dec 2010 00:00:00 +0530 Fri, 19 Aug 2016 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204444 The courts upheld the decision of the lower authorities, allowing the deduction of interest paid on loans under section 57(iii) of the Income-tax Act. The case involved an assessee engaged in the export of jewellery who used borrowed funds to create Fixed Deposit Receipts (FDRs) and earned interest. The courts found a direct link between the interest earned on FDRs and the interest paid on loans, which were utilized for the specific purpose of investing in FDRs. The borrowing aligned with government policies and lower interest rates, justifying the treatment of interest paid as an expenditure. Consequently, the appeals were dismissed. Case-Laws Income Tax Mon, 13 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204444