https://www.taxtmi.com/caselaws?id=400740 Interest expenditure on borrowed funds was treated as deductible against taxable investment and term-deposit interest under section 57 where the liability had accrued under the mercantile system and a nexus existed between borrowings and income-producing investments. Consistency with accepted positions in earlier years supported that result. Interest disallowed as expenditure was treated as part of the acquisition cost of relevant shares and securities for future capital-gains computation. An unsupported ad hoc household-expense addition was reduced on a reasonable and consistent basis. Interest under sections 234A, 234B and 234C remained applicable but required recomputation after crediting tax deductible at source. en-us Fri, 13 Nov 2020 00:00:00 +0530 Tue, 05 Nov 2024 10:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400740 Interest expenditure on borrowed funds was treated as deductible against taxable investment and term-deposit interest under section 57 where the liability had accrued under the mercantile system and a nexus existed between borrowings and income-producing investments. Consistency with accepted positions in earlier years supported that result. Interest disallowed as expenditure was treated as part of the acquisition cost of relevant shares and securities for future capital-gains computation. An unsupported ad hoc household-expense addition was reduced on a reasonable and consistent basis. Interest under sections 234A, 234B and 234C remained applicable but required recomputation after crediting tax deductible at source. Case-Laws Income Tax Fri, 13 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400740