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2024 (2) TMI 148 - ITAT AHMEDABADDisallowance u/s 57 - assessee has not clarified/gave explanation regarding expenses claimed u/s 57 for earning interest income from Banks, interest on income tax refund, miscellaneous income etc. and its related expenses - as per AO held that the since the expenses are not wholly and exclusively incurred for the purpose of making or earning any income which is chargeable under the head income from other sources, therefore, the same was disallowed - HELD THAT:- It is pertinent to note that the expenses/expenditure by the assessee has a direct nexus with the amount/common fund collected by the members of the society and the same which was kept in the Bank as Fixed Deposit. From the perusal of records, it appears that the said deposits as well interest derived thereon is directly used for the maintenance and upkeepment of the society. Therefore, the assessee has rightly set off the same against the income of the assessee society. AO as well as the CIT(A) has not justified in disallowing the same. The decision of Hon’ble Supreme Court in case of Secunderabad Club [2023 (8) TMI 925 - SUPREME COURT] is applicable in the present case. Thus, the appeal of the assessee is allowed.
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