1990 (9) TMI 132

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....unsel for the assessee. No one appeared on behalf of the revenue. 2. The first ground raised in this appeal is about a disallowance of Rs. 2,200 made by the assessing officer on account of payments for taxation matters. The reason given by the assessing officer was that it was a case of loss. The learned CIT(A) has upheld the disallowance for the same reason and he has tried to justify the ITO'....

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....er VI-A but it cannot be applied to all the deductions. Section 80VV provided for deduction of interest on moneys borrowed to pay taxes ; while section 80VV provides for deduction in respect of expenses incurred in connection with certain proceedings under the Act. Thus, these two sections provide for deduction of expenditure in computing the total income of an assessee. It is settled law that the....

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....penditure the concept of there being a positive income before the expenditure can be allowed is not applicable and an expenditure is a necessary deduction in computing the income/loss. Section 80VV merely places a restriction and the assessee has not exceeded that restriction. In my view, therefore, the expenditure to the extent of Rs. 2,200 was allowable. Therefore the disallowance is deleted. Th....

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....his view, two items of expenditure amounting to Rs. 5,200 and Rs. 11,636 were of a capital nature and there was nothing to show that the amount was spent only for repairs of the self-occupied portion. The learned counsel for the assessee pointed out that it had been repeatedly asserted before the authorities below that the amount was spent exclusively for repairs of the self-occupied portion and t....