https://www.taxtmi.com/caselaws?id=797584 Interest expenditure on historical borrowings remains deductible in full under section 57 where the borrowings retain a real nexus with income-producing investments or assets assessable as income from other sources. An oral interest-payment arrangement may be established through the parties' conduct, past treatment and surrounding material; lack of written documentation does not by itself make the liability contingent. Conversion of investments into sale proceeds or fixed deposits does not sever that nexus. Section 57 imposes no arithmetical cap limiting deductible interest to interest income earned in the same year, though year-wise quantification and separate statutory disallowances continue to apply. en-us Mon, 17 Aug 2026 00:00:00 +0530 Tue, 25 Aug 2026 08:34:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797584 Interest expenditure on historical borrowings remains deductible in full under section 57 where the borrowings retain a real nexus with income-producing investments or assets assessable as income from other sources. An oral interest-payment arrangement may be established through the parties' conduct, past treatment and surrounding material; lack of written documentation does not by itself make the liability contingent. Conversion of investments into sale proceeds or fixed deposits does not sever that nexus. Section 57 imposes no arithmetical cap limiting deductible interest to interest income earned in the same year, though year-wise quantification and separate statutory disallowances continue to apply. Case-Laws Income Tax Mon, 17 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797584