TMI Blog2000 (7) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed interest of Rs. 16,777 on overdraft bank account. The AO was of the view that the interest payment was not related to earning the income. Hence, he disallowed the claim of interest. Further, the assessee claimed deduction under s. 80CCA in respect of Rs. 40,000 being investments in NSS and deduction under s. 80CCB in respect of Canpep. The AO disallowed the claim of deduction on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Interest on the above fixed deposit would be received by the assessee only on maturity of the F.D. account along with principal amount. However, for the year under consideration the assessee returned taxable income including inter alia interest of Rs. 81,600 on accrual basis, though this interest was not actually received. The assessee had also taken an overdraft from the bank against the fixed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D account under the head 'income from other sources' it cannot be inferred that the investments made out of overdraft account against the FD has not come out of the income chargeable to tax. In fact the interest which accrued in the FD account amounts to Rs. 81,600 against which overdraft interest of Rs. 16,777 has been claimed by the assessee. It is also obvious that even if we take the investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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