https://www.taxtmi.com/caselaws?id=7218 Wealth-tax paid on an assessee's assets was considered not deductible under section 57(iii) of the Income-tax Act when computing income from other sources. The governing test requires expenditure to be laid out wholly and exclusively for the purpose of earning the income, with a real and direct nexus between the outgoing and the income sought to be earned. Payment of wealth-tax was treated as arising from ownership of assets, not from the actual earning of dividend or interest income, so the link to income generation was too remote. The note distinguishes authorities allowing deductions only where the outgoing is directly and intimately connected with the income-earning activity. en-us Wed, 27 Sep 1967 00:00:00 +0530 Sun, 15 Feb 2009 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7218 Wealth-tax paid on an assessee's assets was considered not deductible under section 57(iii) of the Income-tax Act when computing income from other sources. The governing test requires expenditure to be laid out wholly and exclusively for the purpose of earning the income, with a real and direct nexus between the outgoing and the income sought to be earned. Payment of wealth-tax was treated as arising from ownership of assets, not from the actual earning of dividend or interest income, so the link to income generation was too remote. The note distinguishes authorities allowing deductions only where the outgoing is directly and intimately connected with the income-earning activity. Case-Laws Income Tax Wed, 27 Sep 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7218