9911796707
TMI Blog2009 (1) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... is relatable to the activity of the respondent-assessee in earning income by extending loans to its employees. In so far as the deduction conceived of under clause (iii) of section 57 of the 1961 Act is concerned, the same is relatable only to expenditure incurred for the said “purpose” – deduction of expenditure of interest paid to NABARD not allowed. - 18 of 2001 - - - Dated:- 15-1-2009 - J. S. KHEHAR and NAWAB SINGH JJ. Ms. Urvashi Dhugga for the appellant. Navdeep Sukna and Sudershan Thakur for the respondent. JUDGMENT The judgment of the court was delivered by J. S. KHEHAR — The respondent-assessee is primarily engaged in the activity of letting of godowns or warehouses for storage. In so far as the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of section 57 of the 1961 Act (i.e., income from other sources). The Commissioner of Income-tax (Appeals), adjudicated upon the controversy by an order dated September 25, 1991, wherein it was held that the instant income of the respondent-assessee derived by way of interest was income from other sources. This determination at the hands of the Commissioner of Income-tax (Appeals), was upheld by the Income-tax Appellate Tribunal, vide its order dated May 17, 2000. The orders passed by the Commissioner of Income-tax (Appeals) dated September 25, 1991, as well as the order passed by the Income-tax Appellate Tribunal dated May 17, 2000, are not subject-matter of challenge at the hands of the respondent-assessee. In the aforesaid view of the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fact cannot be its claim, that the interest being paid by the respondent-assessee to the NABARD is an expenditure incurred by it for the "purpose" under reference Thus viewed, we are satisfied that the respondent-assessee cannot be allowed to set off the interest income being derived by it for the welfare of the employees engaged by it as against the interest being paid by the respondent-assessee to the NABARD. 7. In view of the above, we are satisfied that the set off allowed by the Income-tax Appellate Tribunal, dated May 17, 2000, was wholly unjustified, being beyond the scope of section 57 of the 1961 Act. The instant appeal, accordingly, stands allowed in the aforesaid terms. 8. The following substantial question of law aro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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