Interest Deduction Allowed: Loans Against FDRs Result in Net Savings u/s 57(iii).

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....Disallowance of deduction u/s 57(iii) - the interest paid on the loans raised against the FDR was having the direct nexus with the interest received from the FDRs and the assessee choose to save the penalty of 1.5% by raising the loans at 1% higher rate of interest than the interest rate on FDR thus there were saving of 0.5%. - set off allowed - AT....