Interest on loans against FD not allowable against interest from FDR’s

Chandrakant R. Agrawal  Vs PCIT (ITAT Mumbai) At the first blush the claim of the assessee for setting off the interest paid on the loan raised (on security of the FDR’s) against the interest received on FDR’s appeared to be very convincing.  However, we find that the issue is no more res integra and had been settled by the Hon’ble Supreme Court in CIT Vs. Dr. V.P Gopinathan [2001 (2) TMI 10 – SUPREME COURT] wherein had held, that interest on loan taken by the assessee from the bank on security of fixed deposit could not be reduced from his income by way of interest on the fixed depo...