https://www.taxtmi.com/caselaws?id=59132 Interest on borrowings may be deductible where the expenditure is incurred to earn income or to preserve income-yielding assets, even if income is not actually received in the relevant year, provided a real nexus exists. On the borrowings from the assessee's wife, the Tribunal treated the funds as used in an arrangement connected with equity participation, release from counter-guarantee obligations, and protection of shareholding and directorship-related income, and allowed deduction under section 57(iii). Interest on bank borrowings had already been allowed subject to quantified limits in an earlier order, and no fresh material justified interference; that allowance remained undisturbed. The departmental challenge therefore failed. en-us Fri, 22 Sep 1989 00:00:00 +0530 Sat, 25 Dec 2010 12:05:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59132 Interest on borrowings may be deductible where the expenditure is incurred to earn income or to preserve income-yielding assets, even if income is not actually received in the relevant year, provided a real nexus exists. On the borrowings from the assessee's wife, the Tribunal treated the funds as used in an arrangement connected with equity participation, release from counter-guarantee obligations, and protection of shareholding and directorship-related income, and allowed deduction under section 57(iii). Interest on bank borrowings had already been allowed subject to quantified limits in an earlier order, and no fresh material justified interference; that allowance remained undisturbed. The departmental challenge therefore failed. Case-Laws Income Tax Fri, 22 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59132