https://www.taxtmi.com/caselaws?id=168520 Interest on money borrowed to pay earlier years' income-tax is not deductible against the assessee's taxable income, because the borrowing is directed to discharge a tax liability rather than to earn income. The claimed deduction could not be brought within provisions for interest on capital borrowed for business, expenditure wholly and exclusively for business, or expenditure incurred solely for earning income from other sources. In the absence of a specific statutory allowance and any shown nexus between the interest payment and income production, the burden of proving deductibility was not met. en-us Wed, 05 Feb 1964 00:00:00 +0530 Wed, 11 Mar 2015 11:28:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168520 Interest on money borrowed to pay earlier years' income-tax is not deductible against the assessee's taxable income, because the borrowing is directed to discharge a tax liability rather than to earn income. The claimed deduction could not be brought within provisions for interest on capital borrowed for business, expenditure wholly and exclusively for business, or expenditure incurred solely for earning income from other sources. In the absence of a specific statutory allowance and any shown nexus between the interest payment and income production, the burden of proving deductibility was not met. Case-Laws Income Tax Wed, 05 Feb 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168520