https://www.taxtmi.com/caselaws?id=450688 The ITAT Cochin allowed the assessee company's appeal regarding deduction of interest expenditure under section 57. The assessee claimed proportionate interest expenditure against interest income from debt instruments, where the entire investment was sourced from secured debt. The Revenue insisted on taxing gross interest receipts without allowing corresponding expenditure deduction. The ITAT held that only real income is taxable unless constrained by law, and the Revenue's position lacked factual and legal basis. The Tuticorin Alkali Chemicals case cited by Revenue was distinguished as it involved no section 57 expenditure claim. The appeal was allowed for the claimed interest expenditure deduction. en-us Thu, 07 Mar 2024 00:00:00 +0530 Sat, 09 Mar 2024 19:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450688 The ITAT Cochin allowed the assessee company's appeal regarding deduction of interest expenditure under section 57. The assessee claimed proportionate interest expenditure against interest income from debt instruments, where the entire investment was sourced from secured debt. The Revenue insisted on taxing gross interest receipts without allowing corresponding expenditure deduction. The ITAT held that only real income is taxable unless constrained by law, and the Revenue's position lacked factual and legal basis. The Tuticorin Alkali Chemicals case cited by Revenue was distinguished as it involved no section 57 expenditure claim. The appeal was allowed for the claimed interest expenditure deduction. Case-Laws Income Tax Thu, 07 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450688