https://www.taxtmi.com/caselaws?id=26579 Interest on overdrafts used to meet income-tax liabilities was not deductible under section 12(2) of the Indian Income-tax Act, 1922. The Tribunal had treated the borrowing as one made to avoid immediate liquidation of investments, but the Court followed earlier binding authority holding that interest on borrowings applied to payment of income-tax cannot be allowed in computing taxable income. The decision in Eastern Investments was distinguished because it did not concern borrowing to discharge income-tax dues. The deduction claim was therefore disallowed and the Revenue's position was upheld. en-us Tue, 17 Jun 1986 00:00:00 +0530 Sat, 06 Feb 2010 11:31:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26579 Interest on overdrafts used to meet income-tax liabilities was not deductible under section 12(2) of the Indian Income-tax Act, 1922. The Tribunal had treated the borrowing as one made to avoid immediate liquidation of investments, but the Court followed earlier binding authority holding that interest on borrowings applied to payment of income-tax cannot be allowed in computing taxable income. The decision in Eastern Investments was distinguished because it did not concern borrowing to discharge income-tax dues. The deduction claim was therefore disallowed and the Revenue's position was upheld. Case-Laws Income Tax Tue, 17 Jun 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26579