https://www.taxtmi.com/caselaws?id=750653 The ITAT Mumbai allowed the assessee's appeal regarding deduction of interest expenditure under section 57(iii) of the Income Tax Act. Despite the assessee earning Rs. 41 lakhs in bank interest, the CIT(A) had restricted the deduction to the extent of income earned from term deposits. The ITAT held that the assessee was entitled to full deduction of interest expenditure that was laid out wholly and exclusively for earning such income, following precedent from coordinate bench decisions. The tribunal also directed the AO to compute interest under section 234B according to pre-2012 provisions for assessment year 2006-07, as the proviso to section 209(1) was effective from April 1, 2012. en-us Thu, 21 Mar 2024 00:00:00 +0530 Tue, 26 Mar 2024 12:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750653 The ITAT Mumbai allowed the assessee's appeal regarding deduction of interest expenditure under section 57(iii) of the Income Tax Act. Despite the assessee earning Rs. 41 lakhs in bank interest, the CIT(A) had restricted the deduction to the extent of income earned from term deposits. The ITAT held that the assessee was entitled to full deduction of interest expenditure that was laid out wholly and exclusively for earning such income, following precedent from coordinate bench decisions. The tribunal also directed the AO to compute interest under section 234B according to pre-2012 provisions for assessment year 2006-07, as the proviso to section 209(1) was effective from April 1, 2012. Case-Laws Income Tax Thu, 21 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750653