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2009 (5) TMI 504 - HC - Income TaxDeduction-Income from other sources- The assessee was a registered co-operative society engaged in accepting deposits from its members for maintenance of their houses. On the deposits assessee earned interest income. The assessee claim deduction against the interest income on account of expenses incurred towards maintenance of member’s house. The Assessing Officer disallowed the claim. The Commissioner (Appeals) dismissed the appeal. The Tribunal allowed the deduction on account of the expenses incurred towards maintenance out of the interest income. Held that- the contractual obligation between the members of the society and the assessee came to be satisfied only after the deposits were accepted and the reciprocal maintenance arrangement were carried out through the expenses. They had to be treated as part and parcel of the contractual agreement between the members of the society and the assessee. Thus, the Tribunal was justified in allowing deduction on account of expenses incurred towards maintenance of house by the assessee.
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