https://www.taxtmi.com/caselaws?id=783076 ITAT Agra-AT allowed the assessee's appeal, holding that disallowance of interest paid on loans under the head "Income from other sources" was unjustified. It was found that no fresh loans were either borrowed or advanced during the relevant year, and the opening balances of loans, corresponding interest paid, and interest income had been duly furnished to the AO. As the nexus between borrowed funds and interest-earning advances had already been accepted in earlier and subsequent years, the Tribunal held that there was no requirement to re-establish a one-to-one nexus in the current year. The AO was directed to allow deduction of interest under s. 57(iii). en-us Thu, 04 Dec 2025 00:00:00 +0530 Tue, 09 Dec 2025 17:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783076 ITAT Agra-AT allowed the assessee's appeal, holding that disallowance of interest paid on loans under the head "Income from other sources" was unjustified. It was found that no fresh loans were either borrowed or advanced during the relevant year, and the opening balances of loans, corresponding interest paid, and interest income had been duly furnished to the AO. As the nexus between borrowed funds and interest-earning advances had already been accepted in earlier and subsequent years, the Tribunal held that there was no requirement to re-establish a one-to-one nexus in the current year. The AO was directed to allow deduction of interest under s. 57(iii). Case-Laws Income Tax Thu, 04 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783076