TMI Blog2013 (3) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... been able to find out as a fact that the loan from three Banks i.e. Bank of America, American Express Bank and Grindlays Bank, is related to purchases of the units by the assessee and interest paid for availing such loan alone is liable to be deducted for arriving at the net dividend income. Such calculation was accepted by the departmental representatives before the Tribunal. The finding of the Tribunal that the amount of interest as is relatable to the dividend income alone is liable to deducted from determining the dividend income is in accordance with the judgment in Distributors (Baroda) P.Ltd. case ( 1985 (7) TMI 1 - SUPREME COURT). It has been held that the dividend income is to be arrived at after adjusting the interest on loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80AA of the Act. The Tribunal held that the assessee is entitled to deduction of dividend income after adjusting of interest on loan raised for earning of the said dividend income rather than the entire interest paid during the year in question. In the first two months during the relevant assessment year i.e. April May, 1990, the assessee purchased units worth Rs.40.74 crores i.e. purchases amounting to Rs.3.66 crores were made on 05.04.1990, 09.04.1990 and 30.04.1990; purchases amounting to Rs.7.11 crores were made on 02.05.1990, 20.05.1990 21.05.1990; and further purchases amounting to Rs.24.60 crores and Rs.5.36 crores were made on 30.05.1990 and 31.05.1990. It is also a fact that the assessee sold units worth Rs.7.11 cror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. On the other hand, Ms. Suri contended that Section 36 deals with permissible deductions in respect of profits from business or profession, whereas Section 57 deals with income from other sources . Since the income from dividend is income from other sources, therefore, the relevant provision is Section 57 of the Act and such provision contemplates that any expenditure laid out or expended wholly and exclusively for the purpose of making or earning such income alone is liable to be deducted for determining the income from other sources. We have heard learned counsel for the parties and find no error in the order passed by the Tribunal. Though the assessee was maintaining Master Account, but the fact remains that the Tribunal has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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