https://www.taxtmi.com/highlights?id=94986 SC dismissed the assessee's appeal, holding that dividend on redeemable preference shares, interest on short-term bank deposits and service charges for monitoring Sugar Development Fund loans do not qualify for deduction under Section 36(1)(viii) of the Income-tax Act. Interpreting "derived from" narrowly, the Court ruled that only profits having a direct, first-degree nexus with the business of providing long-term finance (as statutorily defined) are eligible. Dividend arises from investment in share capital, not from lending; interest on short-term deposits stems from passive parking of surplus funds; and service charges for SDF loans arise from an agency arrangement using Government funds. These receipts are merely attributable to, but not derived from, the long-term finance business, and are therefore outside the deduction's scope. en-us Fri, 12 Dec 2025 08:55:17 +0530 Fri, 12 Dec 2025 08:55:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=94986 SC dismissed the assessee's appeal, holding that dividend on redeemable preference shares, interest on short-term bank deposits and service charges for monitoring Sugar Development Fund loans do not qualify for deduction under Section 36(1)(viii) of the Income-tax Act. Interpreting "derived from" narrowly, the Court ruled that only profits having a direct, first-degree nexus with the business of providing long-term finance (as statutorily defined) are eligible. Dividend arises from investment in share capital, not from lending; interest on short-term deposits stems from passive parking of surplus funds; and service charges for SDF loans arise from an agency arrangement using Government funds. These receipts are merely attributable to, but not derived from, the long-term finance business, and are therefore outside the deduction's scope. Highlights Income Tax Fri, 12 Dec 2025 08:55:17 +0530 https://www.taxtmi.com/highlights?id=94986