https://www.taxtmi.com/caselaws?id=6637 Section 8 of the Indian Income-tax Act, 1922 allowed taxation of interest on securities and permitted only limited deductions: reasonable expenses incurred in realising actual interest and interest paid on borrowed money used to invest in those securities. The text explains that these deductions are tied to the existence of real interest income and cannot be used to generate a negative income or loss by setting off borrowed-interest costs against no receipts. It also notes that the wording of section 8 differs from other charging and allowance provisions, indicating a distinct treatment of this head of income, and that the later form of section 19 of the 1961 Act was not treated as merely declaratory. en-us Fri, 14 May 1965 00:00:00 +0530 Fri, 30 Jan 2009 19:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6637 Section 8 of the Indian Income-tax Act, 1922 allowed taxation of interest on securities and permitted only limited deductions: reasonable expenses incurred in realising actual interest and interest paid on borrowed money used to invest in those securities. The text explains that these deductions are tied to the existence of real interest income and cannot be used to generate a negative income or loss by setting off borrowed-interest costs against no receipts. It also notes that the wording of section 8 differs from other charging and allowance provisions, indicating a distinct treatment of this head of income, and that the later form of section 19 of the 1961 Act was not treated as merely declaratory. Case-Laws Income Tax Fri, 14 May 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6637