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TMI Blog2004 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... or earning such income. - What section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income. The section does not require that this purpose must be fulfilled in order to qualify the expenditure for deduction – assessee is entitle to deduction - - - - - Dated:- 15-7-2004 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J. - The appellant is the Revenue. The appeal is directed against the order dated October 28, 2003 made in I.T.A No. 1824/Mds of 2002, by the Income-tax Appellate Tribunal, "A" Bench, Madras, holding that the investment made by the respondent/assessee, according to the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed the appeal by order dated August 27, 2002 confirming the assessment order dated March 27, 2002. Aggrieved by the order dated August 27, 2002, of the Commissioner of Income-tax (Appeals), the respondent/assessee preferred a further appeal before the Income-tax Appellate Tribunal, "A" Bench, Chennai. The Tribunal, by order dated October 28, 2003, held that the investment made by the respondent/assessee, according to the directions of the BIFR with the view to sustain the control over the company and to protect the shares already existing in the company, is a reasonable expenditure and is wholly and exclusively made for the purpose of earning of income, and therefore, the residuary provision under section 57(iii) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sources' shall be computed after making the following deductions, namely:- . . . (iii) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income." It is not in dispute that the respondent/assessee was a major shareholder of Binny and Co. Ltd., which was referred to by the BIFR as a sick industry, and the respondent/assessee borrowed moneys from Sundaram Finance and Diamond Districts and invested the same in Binny and Co. Ltd., to rehabilitate the said company under the BIFR scheme and to earn dividend therefrom, but however, the respondent/assessee did not receive any dividend from the company. Hence, the respondent/assessee claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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