Interest expense on unsecured loans raised for earning interest allowable u/s. 57(iii)

Shri Pankaj Surana Vs ITO (ITAT Raipur)

As per Section 57(iii) of the Act, any expenditure not being in the nature of a capital expenditure, laid out or expended wholly and exclusively for the purpose of making or earning income under the head ‘income from other sources’ is to be allowed as a deduction. As the interest-bearing unsecured loans were raised by the assessee with a purpose, intent and motive of earning interest income by advancing the same to third parties and, have actually been so utilized, therefore, the interest expenditure s

Please become a Premium member. If you are already a Premium member, login here to access the full content.