https://www.taxtmi.com/caselaws?id=370913 Interest earned on short-term fixed deposits made out of borrowed funds was treated as taxable revenue income, and the assessee could not automatically set off the corresponding interest paid on the borrowings unless the Act specifically allowed such deduction. The fact that the deposits were funded by borrowings did not change the character of the receipt or expand the available statutory deductions. Salary expenditure incurred before commencement of business was also disallowed against fixed-deposit interest, because no business income had yet arisen and the expense was not deductible under that head. The Revenue's appeals succeeded and the assessment order was restored. en-us Thu, 01 Nov 2018 00:00:00 +0530 Mon, 26 Nov 2018 07:58:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=370913 Interest earned on short-term fixed deposits made out of borrowed funds was treated as taxable revenue income, and the assessee could not automatically set off the corresponding interest paid on the borrowings unless the Act specifically allowed such deduction. The fact that the deposits were funded by borrowings did not change the character of the receipt or expand the available statutory deductions. Salary expenditure incurred before commencement of business was also disallowed against fixed-deposit interest, because no business income had yet arisen and the expense was not deductible under that head. The Revenue's appeals succeeded and the assessment order was restored. Case-Laws Income Tax Thu, 01 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=370913