https://www.taxtmi.com/caselaws?id=790415 Interest expenditure was allowable under section 57(iii) where borrowed funds had a direct nexus with the earning of interest income from loans and fixed deposits, because the expenditure was laid out wholly and exclusively for that purpose. The Revenue's reliance on Tuticorin Alkali Chemicals was rejected as inapplicable since that case concerned taxability of interest income, not deductibility of interest expenditure against such income. Netting off the related interest income and expenditure was therefore upheld, and the disallowance was deleted. en-us Wed, 22 Apr 2026 00:00:00 +0530 Fri, 24 Apr 2026 08:52:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790415 Interest expenditure was allowable under section 57(iii) where borrowed funds had a direct nexus with the earning of interest income from loans and fixed deposits, because the expenditure was laid out wholly and exclusively for that purpose. The Revenue's reliance on Tuticorin Alkali Chemicals was rejected as inapplicable since that case concerned taxability of interest income, not deductibility of interest expenditure against such income. Netting off the related interest income and expenditure was therefore upheld, and the disallowance was deleted. Case-Laws Income Tax Wed, 22 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790415