https://www.taxtmi.com/caselaws?id=460961 Interest expenditure is deductible under section 57(iii) where borrowed funds are directly deployed to earn interest income, because the outlay is then laid out wholly and exclusively for income chargeable under the head "Income from other sources". The Delhi High Court accepted the Tribunal's finding of a direct nexus between the borrowing cost and the interest earned, and held that the facts were materially different from Tuticorin Alkali Chemicals, which involved pre-production borrowings for setting up factories. On that basis, the Tribunal's allowance of the claim was upheld and the disallowance was held unsustainable. en-us Thu, 15 Feb 2024 00:00:00 +0530 Tue, 04 Mar 2025 18:58:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460961 Interest expenditure is deductible under section 57(iii) where borrowed funds are directly deployed to earn interest income, because the outlay is then laid out wholly and exclusively for income chargeable under the head "Income from other sources". The Delhi High Court accepted the Tribunal's finding of a direct nexus between the borrowing cost and the interest earned, and held that the facts were materially different from Tuticorin Alkali Chemicals, which involved pre-production borrowings for setting up factories. On that basis, the Tribunal's allowance of the claim was upheld and the disallowance was held unsustainable. Case-Laws Income Tax Thu, 15 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460961