https://www.taxtmi.com/caselaws?id=12884 Interest on borrowed funds used to invest in shares was held deductible on an accrual basis under section 57(iii) because the provision requires expenditure to be laid out wholly and exclusively for earning the income, not necessarily paid in cash during the year. The lender followed the mercantile system, the interest had been debited in the lender's accounts for the year, and the appellate authority was entitled to adopt that basis. The accrual treatment was found consistent with the statutory scheme, so the deduction was allowed in favour of the assessee. en-us Wed, 01 Aug 2001 00:00:00 +0530 Fri, 22 May 2009 17:45:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12884 Interest on borrowed funds used to invest in shares was held deductible on an accrual basis under section 57(iii) because the provision requires expenditure to be laid out wholly and exclusively for earning the income, not necessarily paid in cash during the year. The lender followed the mercantile system, the interest had been debited in the lender's accounts for the year, and the appellate authority was entitled to adopt that basis. The accrual treatment was found consistent with the statutory scheme, so the deduction was allowed in favour of the assessee. Case-Laws Income Tax Wed, 01 Aug 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12884