https://www.taxtmi.com/caselaws?id=18961 The court held that the expenses incurred by the official liquidator during the liquidation proceedings were allowable as deductions under section 57(iii) of the Income-tax Act, 1961. The expenses were deemed necessary for earning interest and other income, as they were incurred in accordance with court directions and were essential for maintaining the infrastructure to earn income. The court distinguished previous cases and emphasized that the expenses must have a nexus with earning income to be deductible. The decision favored the assessee, affirming the Tribunal's ruling to allow the expenses and rejecting the Department's arguments. en-us Mon, 13 Feb 1995 00:00:00 +0530 Tue, 03 Nov 2009 11:02:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18961 The court held that the expenses incurred by the official liquidator during the liquidation proceedings were allowable as deductions under section 57(iii) of the Income-tax Act, 1961. The expenses were deemed necessary for earning interest and other income, as they were incurred in accordance with court directions and were essential for maintaining the infrastructure to earn income. The court distinguished previous cases and emphasized that the expenses must have a nexus with earning income to be deductible. The decision favored the assessee, affirming the Tribunal's ruling to allow the expenses and rejecting the Department's arguments. Case-Laws Income Tax Mon, 13 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18961