https://www.taxtmi.com/caselaws?id=797092 Interest on borrowings is deductible against dividend income only to the extent a direct factual nexus exists between the borrowing and the dividend-yielding investment; investments funded from sale proceeds or available interest-free funds do not support further interest deduction. Industrial-unit deduction remained available on the established position followed for prior years. Security deposits paid to obtain leased employee accommodation do not create taxable notional interest, because tax liability requires actual income rather than assumed returns. Interest on borrowings for new machinery and overheads incurred during trial runs are revenue expenditure. These principles support the assessee's positions on the identified issues. en-us Mon, 19 Jan 2026 00:00:00 +0530 Mon, 17 Aug 2026 08:38:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797092 Interest on borrowings is deductible against dividend income only to the extent a direct factual nexus exists between the borrowing and the dividend-yielding investment; investments funded from sale proceeds or available interest-free funds do not support further interest deduction. Industrial-unit deduction remained available on the established position followed for prior years. Security deposits paid to obtain leased employee accommodation do not create taxable notional interest, because tax liability requires actual income rather than assumed returns. Interest on borrowings for new machinery and overheads incurred during trial runs are revenue expenditure. These principles support the assessee's positions on the identified issues. Case-Laws Income Tax Mon, 19 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797092