The ITAT held that expenses claimed u/s 57(iii) lacked nexus ...

Expenses must directly relate to income to be deductible. Liquidation expenses not linked to interest income not allowed.

Case Laws Income Tax

June 14, 2024

The ITAT held that expenses claimed u/s 57(iii) lacked nexus with interest income earned on fixed deposits. The interest expenditure was for liquidation expenses, not for earning interest income. Liquidation expenses did not relate to interest income, so not allowable u/s 57(iii). Liquidator's contention that all expenses incurred during liquidation, including interest paid on loans, were allowable was rejected. Set off of losses against income from other sources dismissed due to disallowed expenses. Short term capital gains treated as long term for concessional tax rate u/s 112(1) of the Act.

View Source

← Previous Next →

The ITAT held that expenses claimed u/s 57(iii) lacked nexus ...

Expenses must directly relate to income to be deductible. Liquidation expenses not linked to interest income not allowed.

Case Laws Income Tax

June 14, 2024

You may also like:

Income earned by a housing cooperative society from interest on fixed deposits and rental income is eligible for set-off against maintenance expenses. The interest...

The assessee claimed deduction of brokerage expenses u/s 57(iii) against income from other sources. The Assessing Officer disallowed part of the expenses in proportion...

When the Tribunal has recorded a finding that the expenses relating to obtaining fixed deposits are closely linked with the business requirement of the assessee, such...

Addition of different amounts made towards amount received for sale of Transferable Developmental Rights (TDR) - Income or current liability - assessee’s income from TDR...

Interest expenses claim against the interest income received - It is the nature of the business and all the expenditure incurred in earning the income is allowable...

Characterization of receipts - Treatment of interest income from staff loans and advances, interest income from other loans and advances and miscellaneous income -...

Disallowance of claim of interest expenses u/s. 57(iii) - The Assessing Officer (AO) had disallowed a portion of the interest expenses based on the difference between...

Various issues related to allowability of expenses, deductions, transfer pricing adjustments, and other income tax matters for a pharmaceutical company. Key points are:...

Expenses incurred for earning interest income on estimation basis - AO is directed to allow 1% of expenses on account of interest income and on service charges income - AT

Deduction claimed u/s 57 against income returned u/s 56 - manner of apportioning assessee's expenses to earning income u/s 56 disputed - Revenue authorities rejecting...

Loose papers found during a search at the residences of individuals contained notings and calculations presumed by the Assessing Officer (AO) to relate to undisclosed...

This case deals with the disallowance of expenditure u/s 14A of the Income Tax Act, which pertains to expenditure incurred in relation to exempt income. The key points...

ST – Reimbursement of expenses are not deductible from gross value

Correct head of income - interest income on FD - Income From Other Sources v/s income from business - The said interest income has been earned by the assessee in the...

Revision u/s 263 by CIT - CIT has duly examined the nature of expenses. The expenses are related to medical grants and other grants and J&K flood affected employees -...

Quick Updates: