https://www.taxtmi.com/caselaws?id=8341 Interest on an overdraft secured by shares was not deductible from dividend income because section 12(2) of the Income-tax Act, 1922 allowed only expenditure incurred solely for earning that income. A mere nexus between borrowing, shareholding, and receipt of dividends was insufficient. As the assessee did not show that the overdraft was raised to acquire shares with the object of earning dividends, the claimed interest was too remote from the dividend income and failed the statutory exclusivity test. The deduction was therefore disallowed. en-us Thu, 29 Jul 1971 00:00:00 +0530 Fri, 10 Apr 2009 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8341 Interest on an overdraft secured by shares was not deductible from dividend income because section 12(2) of the Income-tax Act, 1922 allowed only expenditure incurred solely for earning that income. A mere nexus between borrowing, shareholding, and receipt of dividends was insufficient. As the assessee did not show that the overdraft was raised to acquire shares with the object of earning dividends, the claimed interest was too remote from the dividend income and failed the statutory exclusivity test. The deduction was therefore disallowed. Case-Laws Income Tax Thu, 29 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8341