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2004 (7) TMI 39 - MADRAS HIGH COURTInterest on moneys borrowed for investment in shares which had not yielded any dividend - Tribunal holding that the investment made by the respondent/assessee, according to the directions of the BIFR with the view to sustain the control over the company and to protect the shares already existing in the company, is a reasonable expenditure and is wholly and exclusively made for the purpose of earning of income, and therefore, the residuary provision u/s 57(iii), is applicable to this case, as the same is not a capital expenditure, but an expenditure laid out or expended wholly and exclusively for making or earning such income. - What section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income. The section does not require that this purpose must be fulfilled in order to qualify the expenditure for deduction – assessee is entitle to deduction
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