https://www.taxtmi.com/caselaws?id=470555 Interest paid to members on interest-bearing maintenance security deposits is deductible under Section 57(iii) against bank interest earned from deploying those deposits. The deposits were placed in bank fixed deposits while the association was contractually required to pay interest to members, establishing a direct nexus between the interest income and expenditure. The expenditure was wholly and exclusively incurred to earn the bank interest. Section 40(ba) did not apply to a registered society and concerns computation of business income rather than income from other sources. Accordingly, the interest expenditure may be set off against the bank interest income and the addition is deleted. en-us Fri, 21 Mar 2025 00:00:00 +0530 Fri, 31 Jul 2026 08:27:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470555 Interest paid to members on interest-bearing maintenance security deposits is deductible under Section 57(iii) against bank interest earned from deploying those deposits. The deposits were placed in bank fixed deposits while the association was contractually required to pay interest to members, establishing a direct nexus between the interest income and expenditure. The expenditure was wholly and exclusively incurred to earn the bank interest. Section 40(ba) did not apply to a registered society and concerns computation of business income rather than income from other sources. Accordingly, the interest expenditure may be set off against the bank interest income and the addition is deleted. Case-Laws Income Tax Fri, 21 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470555