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| The Tax Publishers2020 TaxPub(DT) 3893 (Mum-Trib) INCOME TAX ACT 1961
Section 57
As decided by Tribunal in assessee's own case allowability of interest expenditure under section 57 is restricted to the extent of interest income.
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Income from other sources - Deduction under section 57 - Allowability of interest expenditure to the extent of interest income -
Assessee claimed deduction of interest expenditure under section 57 against interest receipt on the amounts outstanding to related notified broker entities. AO disallowed the said claim on the ground that the said liability is only provisional and contingent as assessee had suo moto disallowed an amount under section 14A and the balance interest payment was claimed as deduction under section 57. Held: The Tribunal in assessee's own case for assessment years 2012-13, 2013-14 and 2015-16 in ITA Nos. 6965, 6966 and 6969/Mum/2018, dated 16-3-2020 had restricted allowability of interest expenditure under section 57 to the extent of interest income. Following the same, the issue was decided against the same.
Followed:ITA Nos. 6965, 6966 and 6969/Mum/2018, dated 16-3-2020.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2014-15
INCOME TAX ACT 1961
Section 234A, 234B & 234C
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