https://www.taxtmi.com/caselaws?id=181412 The dominant issue was whether interest on borrowed funds used to acquire shares was deductible under s.57(iii) of the Income-tax Act. The tribunal held that the borrowing was for making an investment intended to earn dividend income, and the fact that share acquisition could also incidentally confer controlling interest was a commercial consequence that did not alter the income-earning purpose. Since dividend income was taxable in the relevant year, the interest expenditure was incurred wholly and exclusively for earning such income and was allowable under s.57(iii). The disallowance was set aside and the appeal was allowed in favour of the assessee. en-us Wed, 23 Jan 2013 00:00:00 +0530 Wed, 17 Dec 2025 16:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181412 The dominant issue was whether interest on borrowed funds used to acquire shares was deductible under s.57(iii) of the Income-tax Act. The tribunal held that the borrowing was for making an investment intended to earn dividend income, and the fact that share acquisition could also incidentally confer controlling interest was a commercial consequence that did not alter the income-earning purpose. Since dividend income was taxable in the relevant year, the interest expenditure was incurred wholly and exclusively for earning such income and was allowable under s.57(iii). The disallowance was set aside and the appeal was allowed in favour of the assessee. Case-Laws Income Tax Wed, 23 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181412