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2004 (7) TMI 57 - ALLAHABAD HIGH COURT"Whether, Tribunal was legally justified in allowing various expenses against the income from other sources?" - It is not in dispute that the respondent-assessee earned interest on investments with banks and post-office deposits. However, it claimed expenses to the tune of Rs. 2,03,573. The aforesaid expenses, which it had debited was towards maintenance of office, staff, audit and other expenses. Under section 57 of the Act certain deductions are permissible while computing the income chargeable under the head "Income from other sources". Section 57(iii) provides for deduction of any other expenditure, which is not in the nature of capital expenditure and is laid out or expended wholly and exclusively for the purpose of making or earning such income. The respondent-assessee must have incurred some expenses for earning interest income other than the exempted interest income and, therefore, if the Tribunal has fixed five per cent. of the taxable interest income as a deduction while computing the income from other sources, it cannot be said that the Tribunal has committed any illegality
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