https://www.taxtmi.com/caselaws?id=8576 Interest on borrowing is deductible only when the loan is taken for business purposes or on recognised commercial expediency. An overdraft used to meet a promised donation to an engineering college did not satisfy that test, so the interest was not allowable under either provision cited. A claimed deduction relating to Rs. 4,50,000 and its accretion also failed because the material did not show that the amount had actually been donated or validly impressed with trust; entries in the assessee's own books could not by themselves complete a gift or create a charitable trust. The article thus states that both deductions were disallowed for want of business nexus and proof of divestment. en-us Wed, 22 Sep 1971 00:00:00 +0530 Thu, 30 Apr 2009 17:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8576 Interest on borrowing is deductible only when the loan is taken for business purposes or on recognised commercial expediency. An overdraft used to meet a promised donation to an engineering college did not satisfy that test, so the interest was not allowable under either provision cited. A claimed deduction relating to Rs. 4,50,000 and its accretion also failed because the material did not show that the amount had actually been donated or validly impressed with trust; entries in the assessee's own books could not by themselves complete a gift or create a charitable trust. The article thus states that both deductions were disallowed for want of business nexus and proof of divestment. Case-Laws Income Tax Wed, 22 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8576