https://www.taxtmi.com/caselaws?id=24803 Interest on overdrafts taken to pay income-tax and wealth-tax was held not deductible under Section 57(iii) of the Income-tax Act, 1961, because the expenditure was not laid out wholly and exclusively for earning the income against which deduction was claimed. Applying the dominant purpose test, the Court treated the borrowings as financing the assessee's personal tax liability rather than being connected with the production of interest or dividend income. The claimed interest expenditure therefore failed the statutory requirement for deduction and was disallowed in computing the assessee's income. en-us Thu, 07 Jul 1988 00:00:00 +0530 Fri, 22 Jan 2010 14:15:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24803 Interest on overdrafts taken to pay income-tax and wealth-tax was held not deductible under Section 57(iii) of the Income-tax Act, 1961, because the expenditure was not laid out wholly and exclusively for earning the income against which deduction was claimed. Applying the dominant purpose test, the Court treated the borrowings as financing the assessee's personal tax liability rather than being connected with the production of interest or dividend income. The claimed interest expenditure therefore failed the statutory requirement for deduction and was disallowed in computing the assessee's income. Case-Laws Income Tax Thu, 07 Jul 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24803