https://www.taxtmi.com/caselaws?id=36061 Interest deficit was not deductible under section 57(iii) because the expenditure was not shown to have been laid out wholly and exclusively for earning income from other sources. The governing test is whether the expense has a direct or at least proximate nexus with the income sought to be earned, judged by its manifest and immediate purpose rather than the assessee's motive. On the facts, no different principle was attracted by the later Supreme Court decision relied on, so the mixed-purpose nature of the outlay defeated deduction and the issue was answered for the Revenue. en-us Thu, 17 Jul 1980 00:00:00 +0530 Fri, 19 Mar 2010 11:15:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36061 Interest deficit was not deductible under section 57(iii) because the expenditure was not shown to have been laid out wholly and exclusively for earning income from other sources. The governing test is whether the expense has a direct or at least proximate nexus with the income sought to be earned, judged by its manifest and immediate purpose rather than the assessee's motive. On the facts, no different principle was attracted by the later Supreme Court decision relied on, so the mixed-purpose nature of the outlay defeated deduction and the issue was answered for the Revenue. Case-Laws Income Tax Thu, 17 Jul 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36061