TMI Blog1987 (10) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... . Considering the facts and circumstances of the case, the ITO held that the assessee had not carried on any business during this year and had only income from investments which had to be considered as "income from other sources" and that expenses attributable to such income were admissible under s. 57(iii) of the IT Act, 1961. He estimated the admissible expenses which were wholly and exclusively expended for the purpose of earning such taxable income at Rs. 1000 only. 3. In the appeal before the CIT(A), the assessee contended that though no business activity in the form of coal mining or trading in coal was carried on, it had to incur the minimum expenditure on office establishment and administration, till such time it received the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of a company having main sources of income as property income and income from other sources, the expenses for salary, rent, P.F. contribution audit fees and miscellaneous expenses were allowable as deductions in computing the income from other sources. Following these two decisions, the Tribunal should allow the balance expenses of Rs. 74,044 as deduction from the income from other sources. Sec. 57(i) provides for the allowance of a reasonable sum paid by way of commission to banker for the purposes of realising dividends. Such restriction is not contained in s. 57(Iii). There can be loss even under the head 'other sources' also. This is evident the words contained in s. 71(1). Sec. 71(1) says that where in respect of any assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as only dormant. Further, the income of the assessee consisted of the following: "(1) Interest on Debentures Rs. 150 (2) Interest on Others Rs. 2,100 (3) Interest on Nationall Defence Certificate Rs. 3,300 Rs. 5,550 From the said amount of Rs. 5,550, the ITO had given exemption towards the interest on National Defence Certificate. Out of the balance of Rs. 2,250 the ITO was liberal enough in granting deduction towards expenses at Rs. 1,000. So, no further relief is called for. 6. We have considered the rival submissions. Admittedly, the assessee's coal mines have been nationalised under the Coal Mines (Nationalisation) Act, 1973. Under s. 32 of the said Act, the proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the office, to have the statutory auditor for auditing the company's accounts and to have some misc. expenses for paper and stationery etc., and these expenses were allowable under s. 57(iii) of the Act. In the present case also the assessee claimed expenditure as under: "Salaries, wages and bonus Rs. 29,427 Contribution to provident and superannuation funds Rs. 344 Workmen staff welfare expenses Rs. 286 Rent Rs. 2,400 Travelling expenses Rs. 23,617 Miscelloneous expenses Rs.16,756 Loss on sale of motor car Rs. 2,214 The ITO had estimated the expenses at Rs. 1000 only as wholly and exclusively expended for the purpose of earning the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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