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2011 (4) TMI 827 - HC - Income TaxDisallowance of expenditure - 'Business Income' v/s 'Income from other sources' - Held that:- Merely because the income is assessed under the heading Income from other sources, it is not as if the assessee is not entitled to the expenditure incurred in running that business. It is not the law that only statutory payments are liable to be deducted and other deductions are not permissible. Section 57 (iii) provides that any other expenditure not being in the nature of capital expenditure laid out or expended wholly and exclusively for the purpose of making or earning such income are deductable from the income from other sources while computing the income from other sources. If the assessee is eligible to establish a nexus between the expenditure incurred and the income derived, then certainly he would be entitled to the deduction under the aforesaid provision. Even that exercise has not been done by any of the authorities - In that view of the matter, the order passed by the three authorities is not in accordance with law and cannot be sustained - Decided in favour of assessee.
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