https://www.taxtmi.com/caselaws?id=793230 Deduction under section 80M is stated to be computed on net dividend, but where an assessee has sufficient own funds and the dividend investment is not sourced from borrowings, no proportionate expenditure disallowance is warranted. The note also states that the proviso to section 36(1)(vii) does not restrict bad debt deduction for urban advances written off by a scheduled bank, as clauses (viia) and (vii) operate distinctly. Bank-held securities are treated as stock-in-trade, so interest on purchase of securities, including broken period interest, is revenue expenditure. No proportionate disallowance was indicated for tax-free bond income on the facts stated. 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 under section 80M is stated to be computed on net dividend, but where an assessee has sufficient own funds and the dividend investment is not sourced from borrowings, no proportionate expenditure disallowance is warranted. The note also states that the proviso to section 36(1)(vii) does not restrict bad debt deduction for urban advances written off by a scheduled bank, as clauses (viia) and (vii) operate distinctly. Bank-held securities are treated as stock-in-trade, so interest on purchase of securities, including broken period interest, is revenue expenditure. No proportionate disallowance was indicated for tax-free bond income on the facts stated. Case-Laws Income Tax Fri, 20 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793230