Interest expense having nexus with earned interest income allowable

Ravi Mohan Gehi Vs DCIT (ITAT Mumbai) Conclusion: Assessee was into arranging funds and earned interest income by refinancing to the other parties and the difference in the rates in refinancing was the income of assessee. It was the nature of the business and all the expenditure incurred in earning the income was allowable expenditure. It was only characterization whether it was relating to expenses incurred to earn income or loss incurred in the process of making the income. Therefore, interest expenditure incurred by assessee would fall under the category of loss and was allowed as an expend...