Service of notice and contractual debt acknowledgment preserved insolvency admission against a corporate guarantor despite limitation and natural just...
Original works exemption excludes standalone boulder transportation, leaving subcontracted railway-project transport services subject to service tax l...
Annual production capacity determinations excluding stenter galleries support refunds for unconstitutional excise levies without an unjust-enrichment ...
Vicarious liability for cheque dishonour requires specific allegations of responsibility and cheque signatory; generic director allegations cannot sus...
IT Resilience Index requires market infrastructure institutions to automate resilience scoring, early warnings, and continuous service-delivery monito...
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 to the principal and interest received from the builder. The Tribunal held that section 57(iii) allows deduction of expenses wholly and exclusively incurred for earning such income, without enabling the Assessing Officer to estimate and disallow a portion. The expenditure was incurred to recover the entire amount, including principal and interest, from the builder through brokers. The interest component was offered as income, and the related expenses were wholly deductible. The Tribunal allowed the ground, stating that the expenditure had a direct connection with earning the income and was incurred for that purpose, as required u/s 57(iii) read with judicial precedents. The implication is narrower than section 37(1) for business expenses but requires a nexus between the expenditure and income earning.
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 to the principal and interest received from the builder. The Tribunal held that section 57(iii) allows deduction of expenses wholly and exclusively incurred for earning such income, without enabling the Assessing Officer to estimate and disallow a portion. The expenditure was incurred to recover the entire amount, including principal and interest, from the builder through brokers. The interest component was offered as income, and the related expenses were wholly deductible. The Tribunal allowed the ground, stating that the expenditure had a direct connection with earning the income and was incurred for that purpose, as required u/s 57(iii) read with judicial precedents. The implication is narrower than section 37(1) for business expenses but requires a nexus between the expenditure and income earning.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
