https://www.taxtmi.com/caselaws?id=793230 Deduction for dividend income is computed on net dividend, but no expenditure is disallowable where sufficient own funds financed the dividend-yielding investments rather than interest-bearing borrowings. For scheduled banks, the bad-debt deduction rules distinguish urban advances written off under section 36(1)(vii) from rural advances covered by section 36(1)(viia), with the proviso preventing double deduction only for the latter. Bank-held securities are stock-in-trade, making purchase interest and broken-period interest revenue expenditure. Similarly, sufficient own funds preclude proportionate disallowance of expenditure against exempt bond income. en-us Fri, 20 Feb 2026 00:00:00 +0530 Thu, 11 Jun 2026 08:33:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793230 Deduction for dividend income is computed on net dividend, but no expenditure is disallowable where sufficient own funds financed the dividend-yielding investments rather than interest-bearing borrowings. For scheduled banks, the bad-debt deduction rules distinguish urban advances written off under section 36(1)(vii) from rural advances covered by section 36(1)(viia), with the proviso preventing double deduction only for the latter. Bank-held securities are stock-in-trade, making purchase interest and broken-period interest revenue expenditure. Similarly, sufficient own funds preclude proportionate disallowance of expenditure against exempt bond income. Case-Laws Income Tax Fri, 20 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793230