Case Law Analysis
|Income Tax Appellate Tribunal
Section 57(iii) IT Act | Direct Nexus Between Interest Expense and Income Mandates Deduction : ITAT Delhi
ITAT Delhi rules that interest expenses are deductible under Section 57(iii) if a direct nexus with interest income is established, distinguishing prior precedents. The ruling clarifies that pre-operative interest expenses linked to borrowed funds generating taxable income qualify for deduction, impacting real estate and capital-intensive businesses.