https://www.taxtmi.com/caselaws?id=38119 Interest on borrowings used to discharge income-tax liability is described as not deductible in computing total income, because the borrowing was applied to tax payment rather than income production. Interest on borrowings used for statutory annuity deposits is also described as not deductible, since the deposit scheme was treated as a tax-adjustment mechanism and the expenditure was not laid out wholly and exclusively to earn the instalments received on repayment. On both issues, the claimed deduction was disallowed and the Revenue's position was upheld. en-us Fri, 17 Mar 1978 00:00:00 +0530 Sat, 03 Apr 2010 12:40:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38119 Interest on borrowings used to discharge income-tax liability is described as not deductible in computing total income, because the borrowing was applied to tax payment rather than income production. Interest on borrowings used for statutory annuity deposits is also described as not deductible, since the deposit scheme was treated as a tax-adjustment mechanism and the expenditure was not laid out wholly and exclusively to earn the instalments received on repayment. On both issues, the claimed deduction was disallowed and the Revenue's position was upheld. Case-Laws Income Tax Fri, 17 Mar 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38119