https://www.taxtmi.com/caselaws?id=22408 Interest on borrowings is deductible only where a factual nexus is shown between the borrowing and the acquisition or construction of the property; absent proof of such use, the claim fails. Amounts claimed as interest on decretal dues, old deposits, litigation expenses, establishment charges and similar outgoings are not deductible as business loss where the assessee is found not to be carrying on banking business. The stated principle is that deduction depends on establishing the required nexus or business activity, and a contrary factual finding is decisive against allowance. en-us Thu, 15 Nov 1990 00:00:00 +0530 Wed, 09 Dec 2009 17:49:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22408 Interest on borrowings is deductible only where a factual nexus is shown between the borrowing and the acquisition or construction of the property; absent proof of such use, the claim fails. Amounts claimed as interest on decretal dues, old deposits, litigation expenses, establishment charges and similar outgoings are not deductible as business loss where the assessee is found not to be carrying on banking business. The stated principle is that deduction depends on establishing the required nexus or business activity, and a contrary factual finding is decisive against allowance. Case-Laws Income Tax Thu, 15 Nov 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22408