https://www.taxtmi.com/caselaws?id=6521 Interest on borrowed funds used to acquire shares was deductible under section 12(2) of the Indian Income-tax Act, 1922 where the borrowing had a direct nexus with earning dividend income and the expenditure was wholly and exclusively incurred for that purpose; it was not treated as personal or capital expenditure. Damages paid for failure to take delivery of shares were not deductible because they arose from the assessee's own default and were characterised as capital expenditure, not revenue expenditure. Dividend credited under the share agreement was includible in total income, since the related income accrued to the assessee and could not be excluded once the interest claim was allowed. en-us Wed, 21 Sep 1977 00:00:00 +0530 Thu, 06 Oct 2016 15:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6521 Interest on borrowed funds used to acquire shares was deductible under section 12(2) of the Indian Income-tax Act, 1922 where the borrowing had a direct nexus with earning dividend income and the expenditure was wholly and exclusively incurred for that purpose; it was not treated as personal or capital expenditure. Damages paid for failure to take delivery of shares were not deductible because they arose from the assessee's own default and were characterised as capital expenditure, not revenue expenditure. Dividend credited under the share agreement was includible in total income, since the related income accrued to the assessee and could not be excluded once the interest claim was allowed. Case-Laws Income Tax Wed, 21 Sep 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6521