2009 (1) TMI 261

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r for the respondent. JUDGMENT The judgment of the court was delivered by J. S. KHEHAR — The respondent-assessee is primarily engaged in the activity of letting of godowns or warehouses for storage. In so far as the assessment year 1990-91 is concerned, income in respect of the aforesaid activity was exempt under section 10(29) of the Income Act, 1961 (hereinafter referred to as "the 19....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....above, is the interest income aforesaid. The sole issue which has arisen for consideration before this court is, whether the interest income derived by the respondent-assessee can be set off as against the interest paid by the respondent-assessee for taking a loan from the NABARD. 3. Before we embark on the proposition noticed in the foregoing paragraph, it is essential to record a finding on a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....atter of challenge at the hands of the respondent-assessee. In the aforesaid view of the matter, we have no hesitation in concluding, that the respondent-assessee had accepted that the income derived by the respondent-assessee as interest by extending loans to its employees is income from other sources falling under section 57 of the 1961 Act. 4. Having arrived at the aforesaid conclusion, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....57 of the 1961 Act, for the present controversy, is relatable to the activity of the respondent-assessee in earning income by extending loans to its employees. In so far as the deduction conceived of under clause (iii) of section 57 of the 1961 Act is concerned, the same is relatable only to expenditure incurred for the said "purpose". It is not the case of the respondent-assessee, and in fact can....