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TMI Blog2013 (4) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... business income cannot be denied deduction. Considering the facts and circumstance of the instant case we set aside the impugned order and remit the matter to the file of A.O. for considering the deductibility of expenses claimed by the assessee under the head "profits and gains of business or profession" and thereafter allow set off of loss under the head "business income" against "income from other sources" as per the provisions of section. - ITA No.: 7545/Mum/2011 - - - Dated:- 13-2-2013 - Shri R. S. Syal And DR. S. T. M. Pavalan,JJ. For the Appellant : Shri Satish R. Mody For the Respondent : Shri K. Singh ORDER Per Dr. S. T. M. Pavalan, JM :- This appeal filed by the assessee is directed against the order of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, the AO by referring section 57(iii), disallowed the expenses claimed by the assessee as the expenditure was not for the purpose of earning interest on fixed deposit and thereby computed the total income at Rs.8,40,040/-. 3.2 On appeal, the Ld.CIT(A) confirming the order of the AO, held that the interest income on fixed deposits was to be treated as income from other sources and also disallowed the expenses like preliminary expenses written off as the same would be against matching principle. Aggrieved by the impugned order, the assessee is in appeal before us. 4. Before us, the Ld.AR has stated that since the assesse's company having incorporated only in February 2006 and in the first year of its business in the relevant year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld to be carrying on its business, the deduction for expenses generally incurred for its business cannot be denied simply because its efforts to fetch the business did not materialize. 5.2 Adverting to the facts of the instant case it is seen that although the assessee was in the business but could not turn any business income. In such circumstances the expenses which are otherwise deductible against the business income cannot be denied deduction. Considering the facts and circumstance of the instant case we set aside the impugned order and remit the matter to the file of A.O. for considering the deductibility of expenses claimed by the assessee under the head "profits and gains of business or profession" and thereafter allow set off of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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