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2015 (1) TMI 1246 - AT - Income TaxClaim u/s 57(iii) denied - CIT(A) made disallowance of interst claimed as deduction u/s 57(iii) against interest income disclosed under the head “Income from other Source” - Held that:- In the case of the assessee, we are of the opinion that there is a direct nexus between the money raised and utilized and the expenses by way of interest is also not of capital nature. During the instant year the assessee earned interest income of ₹ 15,99,664/- and claimed deduction of interest paid on borrowings to the tune of ₹ 3,97,244/- u/s 57(iii) of the Act. We in agreement with the submissions of the ld AR of the assessee that the interest paid constitute the input cost of the fund and therefore has to be reduced while determining the income from other sources which is the spirit of the provision of section 57 (iii) of the Act . In view of these facts, we reverse the order of CIT(A) by allowing the appeal of the assessee. - Decided in favour of assessee
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