Vinay Badera v. ACIT (2025) 212 ITD 456 (Pune)(Trib.)

S. 57 : Income from other sources-Deduction of interest-Nexus established between borrowings and lending-Disallowance deleted [S. 56, 57(iii)]

The assessee earned interest income and claimed deduction of interest paid on borrowed funds under section 57(iii). The AO disallowed the claim for lack of nexus. The Tribunal noted that the assessee had established a clear nexus between borrowings and lending, and in subsequent years the AO had accepted the claim. Accordingly, the disallowance was deleted. (AY. 2017-18)