https://www.taxtmi.com/caselaws?id=15496 The court held that interest on borrowings against fixed deposits is not deductible under section 57(iii) of the Income-tax Act. The decision emphasized that income tax liability is determined at the point of income accrual, regardless of its utilization. The court ruled in favor of the Revenue, stating that income generated from borrowed funds is taxable, even if used to repay the loan. The judgment aligned with the principle that interest income is of a revenue nature unless received as damages or compensation, following the Tuticorin Alkali Chemicals case. en-us Wed, 22 Sep 1999 00:00:00 +0530 Tue, 25 Aug 2009 15:33:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15496 The court held that interest on borrowings against fixed deposits is not deductible under section 57(iii) of the Income-tax Act. The decision emphasized that income tax liability is determined at the point of income accrual, regardless of its utilization. The court ruled in favor of the Revenue, stating that income generated from borrowed funds is taxable, even if used to repay the loan. The judgment aligned with the principle that interest income is of a revenue nature unless received as damages or compensation, following the Tuticorin Alkali Chemicals case. Case-Laws Income Tax Wed, 22 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15496