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TMI BlogIncome From Other Sources - Deduction of expenses incurred to accrue such incomeX X X X Extracts X X X X X X X X Extracts X X X X ..... Income From Other Sources - Deduction of expenses incurred to accrue such income - Commentaries / Editorials Dated:- 5-7-2009 - News - Section 56 of the Income Tax, 1961 specified that income which is chargeable to tax under the head "income from other sources". Section 57 allows certain sum of amount / expenses incurred towards such income from the income so taxable. But, the quantum and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extend of deduction allowed by section 57 is the matter of dispute that is raised by the AO while allowing the deduction claimed by the assessee under section 57 in routine assessment proceedings. In the present case, assessee / company is a public sector undertaking of Government of India, which is engaged in construction of Hydro Electric Project for generation of power and irrigation. Retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rns were submitted by it for the relevant years declaring its total income and simultaneously claiming deductions on the interest on deposits with the Banks, interest received on rent from its employees and oustees in Dam area (for construction of their houses for rehabilitation). Assessee claimed 2.5% expenses incurred towards earning of interest and rent income. After hearing them, the A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed the deduction claimed on amount of interest on deposits with the Bank and also disallowed the claim of deduction on interest received on the amounts deposited by employees of assessee and oustees in Dam area and also on the rent received from the employees. After hearing the matter ITAT has allowed the deduction of 2.5% from the taxable income under section 57 . Revenue appealed be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the HC and HC has confirmed the views of ITAT in the matter of The Commissioner of Income Tax, Dehradun Versus Tehri Hydro Development Corporation [2009 -TMI - 34020 - UTTARAKHAND HIGH COURT] Also see: The Commissioner of Income-tax, Dehradun Versus Tehri Hydro Development Corporation [ 2009 -TMI - 34090 - UTTARAKHAND HIGH COURT] <?xml:namespace prefix = o ns = "urn:schemas-micro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... soft-com:office:office" /> While confirming the decision of ITAT, HC followed the following decisions of the Supreme Court: Tuticorin Alkali Chemicals and Fertilizers Ltd. v. Commissioner of Income Tax [2008 -TMI - 5601 - SUPREME Court] Commissioner of Income Tax v. Bokaro Steel Ltd. [2008 -TMI - 5705 - SUPREME Court] - News - Press release - PIB Tax Management India - taxmanage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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