https://www.taxtmi.com/caselaws?id=5988 Interest on a fixed deposit is taxable as income in the assessee's hands and cannot be reduced by interest paid on a loan taken from the same bank against that deposit unless a statute expressly allows the deduction. The borrowing and the deposit do not become mutually linked transactions for assessment purposes merely because the loan is secured by the deposit. The principle of mutuality does not apply on these facts, so taxability is determined on the gross interest received rather than a net figure after setting off loan interest. en-us Tue, 27 Feb 2001 00:00:00 +0530 Mon, 06 Oct 2025 13:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5988 Interest on a fixed deposit is taxable as income in the assessee's hands and cannot be reduced by interest paid on a loan taken from the same bank against that deposit unless a statute expressly allows the deduction. The borrowing and the deposit do not become mutually linked transactions for assessment purposes merely because the loan is secured by the deposit. The principle of mutuality does not apply on these facts, so taxability is determined on the gross interest received rather than a net figure after setting off loan interest. Case-Laws Income Tax Tue, 27 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5988