https://www.taxtmi.com/caselaws?id=183319 Proviso 1 to Section 8 was construed to allow deduction of interest on borrowings only where the interest on the invested securities remains taxable to the assessee; consequently interest on funds used to acquire tax-free securities (excluded by later provisos) is not deductible, against the assessee. Where a bank's accounts do not segregate capital and deposits, investments are to be treated as made proportionately from capital and deposits; the Tribunal's allocation on the basis of justice, equity and good conscience was not displaced and governs computation of interest allowable under proviso 1. en-us Fri, 25 Mar 1949 00:00:00 +0530 Tue, 01 Oct 2019 11:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183319 Proviso 1 to Section 8 was construed to allow deduction of interest on borrowings only where the interest on the invested securities remains taxable to the assessee; consequently interest on funds used to acquire tax-free securities (excluded by later provisos) is not deductible, against the assessee. Where a bank's accounts do not segregate capital and deposits, investments are to be treated as made proportionately from capital and deposits; the Tribunal's allocation on the basis of justice, equity and good conscience was not displaced and governs computation of interest allowable under proviso 1. Case-Laws Income Tax Fri, 25 Mar 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183319