https://www.taxtmi.com/caselaws?id=787710 Interest on a cash credit account incurred to discharge liabilities of an erstwhile proprietary chemicals business was held to have a sufficient nexus with bank fixed deposit income, supported by documentary records and bank enquiry, and therefore constitutes business connected interest expense. The analysis treats the interest as arising from business related liabilities that formed part of the financial transactions of the former business; consequently the interest expenditure is allowable against gross bank deposit interest income and the prior disallowance is set aside, recognising the documentary linkage as determinative for allowability. en-us Mon, 19 Jan 2026 00:00:00 +0530 Wed, 11 Mar 2026 08:17:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787710 Interest on a cash credit account incurred to discharge liabilities of an erstwhile proprietary chemicals business was held to have a sufficient nexus with bank fixed deposit income, supported by documentary records and bank enquiry, and therefore constitutes business connected interest expense. The analysis treats the interest as arising from business related liabilities that formed part of the financial transactions of the former business; consequently the interest expenditure is allowable against gross bank deposit interest income and the prior disallowance is set aside, recognising the documentary linkage as determinative for allowability. Case-Laws Income Tax Mon, 19 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787710