https://www.taxtmi.com/caselaws?id=290458 Interest expenditure under section 57(iii) may be set off against term-deposit interest only to the extent of income actually earned where a direct nexus exists between borrowed funds and the deposits. Interest attributable to exempt share investments is disallowable under section 14A, with Rule 8D used to segregate the relevant expenditure. Such disallowed interest may be capitalised as part of the shares' cost of acquisition for computing profit on their sale. The interest-set-off issue was resolved in the assessee's favour, while the disallowance and capitalisation treatment were sustained. en-us Mon, 16 Mar 2020 00:00:00 +0530 Sun, 27 Sep 2020 12:49:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290458 Interest expenditure under section 57(iii) may be set off against term-deposit interest only to the extent of income actually earned where a direct nexus exists between borrowed funds and the deposits. Interest attributable to exempt share investments is disallowable under section 14A, with Rule 8D used to segregate the relevant expenditure. Such disallowed interest may be capitalised as part of the shares' cost of acquisition for computing profit on their sale. The interest-set-off issue was resolved in the assessee's favour, while the disallowance and capitalisation treatment were sustained. Case-Laws Income Tax Mon, 16 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290458