Netting of income u/s 57 allowed as there is direct nexus between interest received and paid

Mukesh Kanyailal Shah Vs Office of the Principal Commissioner of Income Tax PCIT (ITAT Mumbai) ITAT Mumbai held that there is a direct nexus between interest received on loan given to firm and interest payment on loan taken from the bank and hence netting of the net interest income allowable under section 57 of the Income Tax Act. Facts- The ld. PCIT in his revisionary jurisdiction called for the assessment records and noted that assessee has claimed interest expenses of Rs.37,16,200/- on SBI term loan as against interest income received from the partnership firm of Rs. 46,23,832/-. The assess...