Deduction u/s 57 allowed if nexus exist between income earned & amount expended

Shri Kailash Chand Soni Vs ACIT (ITAT Jaipur) The issue under consideration is whether the addition on account of disallowance of interest expenses which are in accordance the provisions of section 57(iii) of the Income Tax Act, 1961 is justified in law? In the present case, the assessee has taken unsecured loans from various parties during the year under consideration or in the earlier years for the purpose of advancing loans to other parties and making investment in finesse jewels Pvt. Ltd. where the assessee is director and shareholder. During the year under consideration the assessee has r...