https://www.taxtmi.com/caselaws?id=460954 ITAT Delhi dismissed Revenue's appeal regarding disallowance of interest expenses. The assessee borrowed money and advanced it to others, earning interest income. AO disallowed interest deduction claiming it cannot be set off against interest income. ITAT held that interest paid was wholly and exclusively for earning interest income, allowable under Section 57(iii). Following Tuticorin Alkali Chemicals precedent and finding no borrowed funds were used for share investments, the Tribunal upheld CIT(A)'s direction to allow the deduction. en-us Thu, 23 Nov 2017 00:00:00 +0530 Tue, 04 Mar 2025 18:58:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460954 ITAT Delhi dismissed Revenue's appeal regarding disallowance of interest expenses. The assessee borrowed money and advanced it to others, earning interest income. AO disallowed interest deduction claiming it cannot be set off against interest income. ITAT held that interest paid was wholly and exclusively for earning interest income, allowable under Section 57(iii). Following Tuticorin Alkali Chemicals precedent and finding no borrowed funds were used for share investments, the Tribunal upheld CIT(A)'s direction to allow the deduction. Case-Laws Income Tax Thu, 23 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460954