https://www.taxtmi.com/caselaws?id=169481 Interest on borrowed funds used to purchase shares was treated as allowable expenditure under section 12(2) where the borrowing was incurred for the purpose of making or earning income from that source. The absence of dividend income from the particular shares did not by itself defeat the deduction. For computation under a single head of income, receipts and outgoings from distinct sources within that head must be adjusted against each other before arriving at the taxable income. The analysis also notes that the Tribunal erred in treating the lack of share income as decisive against allowance of the interest. en-us Thu, 16 Nov 1961 00:00:00 +0530 Tue, 21 Apr 2015 18:12:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169481 Interest on borrowed funds used to purchase shares was treated as allowable expenditure under section 12(2) where the borrowing was incurred for the purpose of making or earning income from that source. The absence of dividend income from the particular shares did not by itself defeat the deduction. For computation under a single head of income, receipts and outgoings from distinct sources within that head must be adjusted against each other before arriving at the taxable income. The analysis also notes that the Tribunal erred in treating the lack of share income as decisive against allowance of the interest. Case-Laws Income Tax Thu, 16 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169481