https://www.taxtmi.com/caselaws?id=400740 Interest expenditure is deductible under section 57 where borrowed funds have a clear nexus with investments and term deposits generating taxable interest, particularly when the assessee follows the mercantile system and the liability has accrued. The note also states that any interest expenditure disallowed on this basis may be capitalised to the cost of the relevant shares and securities for future capital gains computation. Ad hoc additions for personal household expenses should rest on evidence and may be reduced where only estimate-based disallowance is made. Interest under sections 234A, 234B and 234C is to be recomputed after giving credit for tax deductible at source, in line with the assessee's assessed income and tax credit position. 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 is deductible under section 57 where borrowed funds have a clear nexus with investments and term deposits generating taxable interest, particularly when the assessee follows the mercantile system and the liability has accrued. The note also states that any interest expenditure disallowed on this basis may be capitalised to the cost of the relevant shares and securities for future capital gains computation. Ad hoc additions for personal household expenses should rest on evidence and may be reduced where only estimate-based disallowance is made. Interest under sections 234A, 234B and 234C is to be recomputed after giving credit for tax deductible at source, in line with the assessee's assessed income and tax credit position. Case-Laws Income Tax Fri, 13 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400740