Income from other sources - Deduction of interest expenditure - direction of the CIT – A in restricting...

Income from other sources - Deduction of interest expenditure - direction of the CIT – A in restricting the deduction to the extent of income earned of term deposit - The Appellate Tribunal noted that the appellant had earned bank interest of Rs. 41 lakhs. - Following previous decisions of the Coordinate Bench, the Tribunal directed the AO to allow the deduction of interest expenditure of Rs. 3.27 crores, as claimed by the appellant. - The Tribunal found that the interest expenditure was indeed incurred for the purpose of earning interest income, based on precedents and the nature of the transactions. .....

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