https://www.taxtmi.com/caselaws?id=8267 Section 12(2) permits deduction of non-capital expenditure only when it is incurred solely to earn income from an existing source. A separately identifiable block of shares may constitute a distinct dividend-income source; however, once that block has ceased to be held, interest on its unpaid purchase price lacks the required connection with earning dividend income. Legal expenditure for litigation concerning the same disposed shareholding is similarly too remote from income generation. Interest and litigation expenses relating to a ceased shareholding are therefore not deductible under section 12(2). en-us Tue, 23 Mar 1971 00:00:00 +0530 Thu, 09 Apr 2009 09:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8267 Section 12(2) permits deduction of non-capital expenditure only when it is incurred solely to earn income from an existing source. A separately identifiable block of shares may constitute a distinct dividend-income source; however, once that block has ceased to be held, interest on its unpaid purchase price lacks the required connection with earning dividend income. Legal expenditure for litigation concerning the same disposed shareholding is similarly too remote from income generation. Interest and litigation expenses relating to a ceased shareholding are therefore not deductible under section 12(2). Case-Laws Income Tax Tue, 23 Mar 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8267