https://www.taxtmi.com/caselaws?id=283150 The Court ruled in favor of the assessee, allowing the deduction of interest paid on borrowings related to investments as an expenditure under the Income Tax Act, 1961. The Court emphasized the need to match borrowings with assets and liabilities to determine the purpose of borrowing. A further deduction of 18,000 for each of the three years was permitted. The judgment referenced a Supreme Court case to support this decision, emphasizing that the purpose of expenditure for making or earning income is crucial. The second question regarding the extent of allowable interest expenditure was left unanswered as a factual controversy. Each party was directed to bear their own costs. en-us Tue, 20 Jan 1998 00:00:00 +0530 Tue, 10 Sep 2019 11:37:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283150 The Court ruled in favor of the assessee, allowing the deduction of interest paid on borrowings related to investments as an expenditure under the Income Tax Act, 1961. The Court emphasized the need to match borrowings with assets and liabilities to determine the purpose of borrowing. A further deduction of 18,000 for each of the three years was permitted. The judgment referenced a Supreme Court case to support this decision, emphasizing that the purpose of expenditure for making or earning income is crucial. The second question regarding the extent of allowable interest expenditure was left unanswered as a factual controversy. Each party was directed to bear their own costs. Case-Laws Income Tax Tue, 20 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283150