https://www.taxtmi.com/caselaws?id=290058 Interest expenditure may be allowed on accrual under the mercantile system where the liability has accrued and a direct nexus exists between borrowed funds and the income earned; here, the issue was sent back for verification and appropriate relief. Because the book-profit adjustment under section 115JB depended on that interest disallowance, the book-profit computation also went back as consequential. The note further states that interest under sections 234A, 234B and 234C remains chargeable in principle, but it must be recomputed after granting credit for tax deductible at source. en-us Mon, 15 Oct 2018 00:00:00 +0530 Mon, 07 Sep 2020 10:11:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290058 Interest expenditure may be allowed on accrual under the mercantile system where the liability has accrued and a direct nexus exists between borrowed funds and the income earned; here, the issue was sent back for verification and appropriate relief. Because the book-profit adjustment under section 115JB depended on that interest disallowance, the book-profit computation also went back as consequential. The note further states that interest under sections 234A, 234B and 234C remains chargeable in principle, but it must be recomputed after granting credit for tax deductible at source. Case-Laws Income Tax Mon, 15 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290058