https://www.taxtmi.com/caselaws?id=7299 Interest on borrowings used to acquire shares was not deductible as business expenditure where the shares were unconnected with the assessee's banking and chit business and the assessee was not a dealer in shares. The same interest was, however, deductible under the head of other sources because section 12(2) allows expenditure incurred solely to earn income from that source, and actual receipt of dividend or other income in the relevant year is not required. The provision was construed as permitting deduction where the expenditure was directed to earning potential income from shares, even if no such income was realised in that year. en-us Thu, 01 Aug 1968 00:00:00 +0530 Tue, 17 Feb 2009 17:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7299 Interest on borrowings used to acquire shares was not deductible as business expenditure where the shares were unconnected with the assessee's banking and chit business and the assessee was not a dealer in shares. The same interest was, however, deductible under the head of other sources because section 12(2) allows expenditure incurred solely to earn income from that source, and actual receipt of dividend or other income in the relevant year is not required. The provision was construed as permitting deduction where the expenditure was directed to earning potential income from shares, even if no such income was realised in that year. Case-Laws Income Tax Thu, 01 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7299