https://www.taxtmi.com/caselaws?id=169528 Interest on borrowed funds used to acquire shares was not deductible under section 12(2) of the Income-tax Act, 1922, because that provision allows only expenditure incurred for earning income chargeable under the head "Income from other sources." The Court held that section 12(2) is distinct from the business deduction rule in section 10(2)(xv) and is not interchangeable with it. As no dividend or other income was actually received from the investment during the relevant year, there was nothing against which the interest could be deducted. The deduction claim was therefore disallowed. en-us Fri, 10 Mar 1961 00:00:00 +0530 Sat, 25 Apr 2015 10:22:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169528 Interest on borrowed funds used to acquire shares was not deductible under section 12(2) of the Income-tax Act, 1922, because that provision allows only expenditure incurred for earning income chargeable under the head "Income from other sources." The Court held that section 12(2) is distinct from the business deduction rule in section 10(2)(xv) and is not interchangeable with it. As no dividend or other income was actually received from the investment during the relevant year, there was nothing against which the interest could be deducted. The deduction claim was therefore disallowed. Case-Laws Income Tax Fri, 10 Mar 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169528