INTEREST ON BORROWINGS

Mr. X borrowed Rs. 4,00,000 from his friends and relatives and agree to pay interest and he invested the money in a Firm as capital contribution. He has paid Rs.48,000.00 as interest during FY: 2008-2009, and has not received any interest on capital from the firm, but Rs. 90,000.00 as share of profit. As the share of profit is exempted from tax, Is the interest of Rs.48,000.00 can be set off against the business profit of his other businesses (from proprietorship concern)