Expenses incurred to earn Interest Income can be claimed u/s 57(iii)

ITO Vs. M/s Borojalingh Tea Co. (ITAT Kolkata) The question before us arises so as to whether the assessee is entitled for claiming the interest expense against the interest income in the given facts and circumstances. It is undisputed fact that the loan was provided to the parties on interest and accordingly interest income was earned. Now the question arises whether the fund used by the assessee in providing loan was interest bearing or not. On perusal of the balance-sheet we find that assessee has been paying interest on the capital contributed by the partners to the firm as well as money b...