https://www.taxtmi.com/caselaws?id=754815 ITAT Rajkot dismissed the assessee's appeal regarding disallowance of interest expenses under section 57(iii). The assessee claimed interest paid to depositors and banks was for earning interest income from FDRs and savings accounts. However, the borrowed funds were actually invested in partnership firms and immovable properties. The tribunal held that section 57(iii) requires expenditure to be incurred wholly and exclusively for earning the specific income. Since no direct nexus existed between the interest expenditure and income from other sources (interest on deposits/savings), the CIT(A)'s disallowance was upheld. en-us Thu, 27 Jun 2024 00:00:00 +0530 Sun, 30 Jun 2024 16:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754815 ITAT Rajkot dismissed the assessee's appeal regarding disallowance of interest expenses under section 57(iii). The assessee claimed interest paid to depositors and banks was for earning interest income from FDRs and savings accounts. However, the borrowed funds were actually invested in partnership firms and immovable properties. The tribunal held that section 57(iii) requires expenditure to be incurred wholly and exclusively for earning the specific income. Since no direct nexus existed between the interest expenditure and income from other sources (interest on deposits/savings), the CIT(A)'s disallowance was upheld. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754815