https://www.taxtmi.com/caselaws?id=346063 Interest earned on fixed deposits created during winding up was assessable as income from other sources, and the borrowing costs could not be netted against that income. Deduction under section 57(iii) was unavailable because the interest on borrowings was not expenditure laid out wholly and exclusively for earning the fixed-deposit interest, and no sufficient nexus existed between the borrowings and the income. The principle applied was that interest income cannot be reduced unless the statute expressly permits the deduction or set-off. The claimed set-off was therefore not permissible and the issue was decided against the assessee. en-us Tue, 10 Jan 2017 00:00:00 +0530 Thu, 03 Aug 2017 07:18:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346063 Interest earned on fixed deposits created during winding up was assessable as income from other sources, and the borrowing costs could not be netted against that income. Deduction under section 57(iii) was unavailable because the interest on borrowings was not expenditure laid out wholly and exclusively for earning the fixed-deposit interest, and no sufficient nexus existed between the borrowings and the income. The principle applied was that interest income cannot be reduced unless the statute expressly permits the deduction or set-off. The claimed set-off was therefore not permissible and the issue was decided against the assessee. Case-Laws Income Tax Tue, 10 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346063