https://www.taxtmi.com/caselaws?id=21120 Interest on unpaid purchase price of shares was held not deductible under section 57(iii) because the expenditure must be incurred wholly and exclusively for earning income. The required nexus need not be direct, and income need not actually arise, but the dominant and sole purpose must be to earn income. Here, the shares were acquired to obtain control of the company and improve its business, so the payment served a mixed purpose rather than an exclusive income-earning purpose. The deduction was therefore disallowed and the issue was answered against the assessee. en-us Tue, 19 Jan 1993 00:00:00 +0530 Thu, 11 Dec 2025 23:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21120 Interest on unpaid purchase price of shares was held not deductible under section 57(iii) because the expenditure must be incurred wholly and exclusively for earning income. The required nexus need not be direct, and income need not actually arise, but the dominant and sole purpose must be to earn income. Here, the shares were acquired to obtain control of the company and improve its business, so the payment served a mixed purpose rather than an exclusive income-earning purpose. The deduction was therefore disallowed and the issue was answered against the assessee. Case-Laws Income Tax Tue, 19 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21120