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2023 (7) TMI 366 - AT - Income TaxDisallowance of Expenditure u/s 57 (iii) - expenditure in the P&L account in the form of salary, maintenance and other expenses which had been disallowed - AO noted that the appellant had earned interest on FDRs against which the appellant had claimed expenditure - HELD THAT:- Under the scheme of Income tax act, the total income of the company is chargeable to tax under section 4 of the Act. The total income has to be computed in accordance with the provisions of the Act - The income of the assessee rightly falls under the head “Income from other sources”. As per the provisions of Section 57(iii), all the expenditure laid out or expended wholly and exclusively for the purpose of making or earning such income has to be allowed as deduction. We find that employee remuneration, salary, legal expenses, board meeting expenses, Director sitting fees cannot be attributable to the interest earned from the fixed deposits. Reliance is being placed on the judgment of CIT Vs. V.P. Gopinathan [2001 (2) TMI 10 - SUPREME COURT] wherein held that there should be a nexus between the expenditure incurred and the income earned. Hence, the facts and circumstances of the instant case, we hereby affirm the order of the ld. CIT(A). Appeal of the assessee is dismissed.
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