https://www.taxtmi.com/caselaws?id=7232 Interest on borrowings used merely to discharge a personal estate-duty liability is not deductible under section 57(iii) of the Income-tax Act, because the expenditure must be laid out wholly and exclusively for earning income and must have a real nexus with that income. By contrast, if the borrowing is used to clear a charge on income-producing property, the connection with preserving the asset from which income arises may satisfy the statutory test and the interest may qualify for deduction. The applicable result therefore depends on whether the liability was personal to the assessee or attached to the property as a charge. en-us Mon, 09 Oct 1967 00:00:00 +0530 Mon, 16 Feb 2009 09:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7232 Interest on borrowings used merely to discharge a personal estate-duty liability is not deductible under section 57(iii) of the Income-tax Act, because the expenditure must be laid out wholly and exclusively for earning income and must have a real nexus with that income. By contrast, if the borrowing is used to clear a charge on income-producing property, the connection with preserving the asset from which income arises may satisfy the statutory test and the interest may qualify for deduction. The applicable result therefore depends on whether the liability was personal to the assessee or attached to the property as a charge. Case-Laws Income Tax Mon, 09 Oct 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7232