https://www.taxtmi.com/caselaws?id=27135 The court held that interest earned on short-term deposits from borrowed amounts was not an allowable expenditure under section 57(iii) of the Income-tax Act, 1961. The petitioner's argument that the interest should be considered as expenditure laid out for earning income was rejected. The court emphasized that the borrowings were not made to earn interest, and the interest income was independent of the borrowings. The court also noted that failure to challenge assessments for previous or subsequent years did not affect the current challenge. Despite procedural flaws in the Commissioner's order, the court upheld the conclusions and dismissed the writ petitions, suggesting legislative amendments be considered. en-us Thu, 11 Jul 1985 00:00:00 +0530 Thu, 11 Feb 2010 10:10:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27135 The court held that interest earned on short-term deposits from borrowed amounts was not an allowable expenditure under section 57(iii) of the Income-tax Act, 1961. The petitioner's argument that the interest should be considered as expenditure laid out for earning income was rejected. The court emphasized that the borrowings were not made to earn interest, and the interest income was independent of the borrowings. The court also noted that failure to challenge assessments for previous or subsequent years did not affect the current challenge. Despite procedural flaws in the Commissioner's order, the court upheld the conclusions and dismissed the writ petitions, suggesting legislative amendments be considered. Case-Laws Income Tax Thu, 11 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27135