Interest Follows Purpose, Not Label: ITAT on Section 57(iii) Deduction

Arvind Chhotalal Morzaria Vs ACIT (ITAT Mumbai) Interest follows purpose, not label: ITAT allows deduction u/s 57(iii) for interest paid on housing loan used to earn interest income Mumbai ITAT  allowed assessee’s appeal &  deleted disallowance of ₹30.90 lakh made by AO by denying deduction of interest u/s 57(iii). Assessee had acquired a property from own funds &  subsequently raised a mortgage loan from Bank of Baroda, which was directly disbursed to a company, yielding taxable interest income. AO & CIT(A) treated the borrowing as a housing loan &  restricted deductio...