12 November 2014
The Assessee earns income from interest (offered for tax under IFOS). He claims interest expese u/s 57. The A. O. proposes to disallow the interest expense. He argues that the interest was not spent to earn the income.
Can the assessee ask for transferring both the interests (income & expense) u/s 37 ? He has no other business. Banking is not his business as such.
12 November 2014
That is not the plea. The expenses incurred to earn the income can be deducted. Can you please tell me your views as to how you feel that interest is paid to earn the income?
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