https://www.taxtmi.com/caselaws?id=459948 The court upheld the CIT(A)'s decision, allowing the assessee to deduct interest paid on borrowed funds against taxable interest income earned from a partnership firm's current account. It was determined that the borrowed funds were not used for capital contribution, which would be tax-exempt, but for generating taxable income. Consequently, the court dismissed the revenue's appeal, ruling that Section 14A of the Income Tax Act, 1961, was not applicable, as the income in question was taxable, not exempt. The court's decision affirmed that deductions depend on the nature of the income generated and that Section 14A applies only to exempt income. en-us Fri, 05 Aug 2016 00:00:00 +0530 Thu, 02 Jan 2025 14:23:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459948 The court upheld the CIT(A)'s decision, allowing the assessee to deduct interest paid on borrowed funds against taxable interest income earned from a partnership firm's current account. It was determined that the borrowed funds were not used for capital contribution, which would be tax-exempt, but for generating taxable income. Consequently, the court dismissed the revenue's appeal, ruling that Section 14A of the Income Tax Act, 1961, was not applicable, as the income in question was taxable, not exempt. The court's decision affirmed that deductions depend on the nature of the income generated and that Section 14A applies only to exempt income. Case-Laws Income Tax Fri, 05 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459948