https://www.taxtmi.com/caselaws?id=399056 Interest paid on borrowed funds advanced to associate concerns is deductible under section 57(iii) only where a demonstrable nexus exists between the borrowing and the earning of interest income. Where the record does not clearly establish the source and use of mixed funds, and the evidence on nexus remains incomplete, the matter requires factual verification before any deduction can be accepted. The Tribunal therefore did not finally approve the claim on merits and sent the issue back for fresh examination and decision in accordance with law. en-us Mon, 28 Sep 2020 00:00:00 +0530 Thu, 01 Oct 2020 16:09:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399056 Interest paid on borrowed funds advanced to associate concerns is deductible under section 57(iii) only where a demonstrable nexus exists between the borrowing and the earning of interest income. Where the record does not clearly establish the source and use of mixed funds, and the evidence on nexus remains incomplete, the matter requires factual verification before any deduction can be accepted. The Tribunal therefore did not finally approve the claim on merits and sent the issue back for fresh examination and decision in accordance with law. Case-Laws Income Tax Mon, 28 Sep 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399056