https://www.taxtmi.com/caselaws?id=5185 The Supreme Court addressed the conflict in High Courts' decisions on the admissibility of interest on borrowed money for share investment under s. 57(iii) of the Income Tax Act, 1961. It held that such expenditure must be incurred wholly and exclusively for income purposes, irrespective of actual income earned. The Court rejected the revenue's argument linking deduction to income generation in a specific year, emphasizing the legislative intent and accounting principles. Aligning with multiple High Courts, it allowed the deduction and ruled in favor of the assessee, directing the revenue to bear the costs. en-us Wed, 04 Oct 1978 00:00:00 +0530 Fri, 21 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5185 The Supreme Court addressed the conflict in High Courts' decisions on the admissibility of interest on borrowed money for share investment under s. 57(iii) of the Income Tax Act, 1961. It held that such expenditure must be incurred wholly and exclusively for income purposes, irrespective of actual income earned. The Court rejected the revenue's argument linking deduction to income generation in a specific year, emphasizing the legislative intent and accounting principles. Aligning with multiple High Courts, it allowed the deduction and ruled in favor of the assessee, directing the revenue to bear the costs. Case-Laws Income Tax Wed, 04 Oct 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5185