https://www.taxtmi.com/caselaws?id=20077 Interest on borrowings used to acquire shares can be deductible where the share investment is closely connected with the taxpayer's business or is made to earn dividend income. The text states that interest on shares of Western India Theatres Ltd. was treated as business expenditure because the acquisition formed an integral part of business operations, and interest on shares of Associated Bombay Cinemas Pvt. Ltd. was also treated as deductible because the borrowing was laid out wholly and exclusively for earning income. The assessee was therefore entitled to deduct the interest payments. en-us Wed, 16 Mar 1994 00:00:00 +0530 Wed, 11 Nov 2009 15:45:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20077 Interest on borrowings used to acquire shares can be deductible where the share investment is closely connected with the taxpayer's business or is made to earn dividend income. The text states that interest on shares of Western India Theatres Ltd. was treated as business expenditure because the acquisition formed an integral part of business operations, and interest on shares of Associated Bombay Cinemas Pvt. Ltd. was also treated as deductible because the borrowing was laid out wholly and exclusively for earning income. The assessee was therefore entitled to deduct the interest payments. Case-Laws Income Tax Wed, 16 Mar 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20077