TMI Blog2009 (5) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... actual 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. - 185/08 - - - Dated:- 22-5-2009 - KHEHAR J. S. and AJAY TEWARI JJ. Yogesh Putney for the appellant. Judgment: J. S. Khehar J .- The pleadings in the instant appeal as well as the orders passed by the various Revenue authorities reveal that in the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent-assessee. Out of the interest income, the respondent-assessee was incurring expenses for the maintenance of the houses of the members who had made the said deposits. It was in the aforesaid view of the matter, that the Income-tax Appellate Tribunal accepted the claim of the respondent-assessee for deduction. 6. The first contention advanced by the learned counsel for the appellant to assail the order passed by the Income-tax Appellate Tribunal dated August 24, 2007, was that the activity of maintenance was not covered under the objects and reasons of the respondent-assessee, which was a registered co-operative society and as such expenses incurred towards an activity beyond the objects and reasons of the respondent-asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue of interest income could not be confused with the issue of expenses incurred on account of maintenance of houses and as such expenses on account of maintenance of houses could not in any case be deducted from out of the interest income by the respondent-assessee. We are afraid that it is not possible for us even to accept the instant sub-mission advanced on behalf of the Revenue. As already noticed herein-above, interest was derived on deposits made by the members of the society requiring the respondent-assessee to discharge the liability of their houses. As a matter of executing the obligation for the deposits made, the respondent-assessee was incurring expenses. It is those very expenses for which deposits were made. The contractual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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