https://www.taxtmi.com/caselaws?id=160198 Interest received under the advance-tax scheme and interest payable for default were treated as arising from distinct statutory situations, so the amounts could not be netted against each other unless the Act expressly permitted set-off. The assessee was therefore not entitled to reduce the interest received by the interest paid in computing taxable income. Interest paid for failure to comply with a statutory obligation was also not deductible as business expenditure or on grounds of commercial expediency, and it did not qualify as an expense incurred to earn income from other sources. The taxable receipt remained unreduced by the default interest payment. en-us Fri, 24 Aug 1956 00:00:00 +0530 Wed, 11 Dec 2013 15:15:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160198 Interest received under the advance-tax scheme and interest payable for default were treated as arising from distinct statutory situations, so the amounts could not be netted against each other unless the Act expressly permitted set-off. The assessee was therefore not entitled to reduce the interest received by the interest paid in computing taxable income. Interest paid for failure to comply with a statutory obligation was also not deductible as business expenditure or on grounds of commercial expediency, and it did not qualify as an expense incurred to earn income from other sources. The taxable receipt remained unreduced by the default interest payment. Case-Laws Income Tax Fri, 24 Aug 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160198