https://www.taxtmi.com/caselaws?id=59119 Interest on borrowings used to acquire shares was not deductible under section 57(iii) once those shares had been allotted away on partial partition, because the expenditure must be laid out for earning income from a source still existing in the assessee's hands. The borrowed funds linked to the 1,350 partitioned shares could not support a dividend-related deduction after those shares ceased to belong to the HUF. However, the disallowance had to be recomputed because the Assessing Officer had adopted a higher interest figure than the actual interest paid and had not fully excluded the portion referable to the 8 shares retained by the HUF. en-us Wed, 12 Dec 1984 00:00:00 +0530 Sat, 25 Dec 2010 11:31:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59119 Interest on borrowings used to acquire shares was not deductible under section 57(iii) once those shares had been allotted away on partial partition, because the expenditure must be laid out for earning income from a source still existing in the assessee's hands. The borrowed funds linked to the 1,350 partitioned shares could not support a dividend-related deduction after those shares ceased to belong to the HUF. However, the disallowance had to be recomputed because the Assessing Officer had adopted a higher interest figure than the actual interest paid and had not fully excluded the portion referable to the 8 shares retained by the HUF. Case-Laws Income Tax Wed, 12 Dec 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59119