2000 (7) TMI 206

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....st. yr. 1991-92. 2. For asst. yr. 1991-92 the assessee claimed interest of Rs. 16,777 on overdraft bank account. The AO was of the view that the interest payment was not related to earning the income. Hence, he disallowed the claim of interest. Further, the assessee claimed deduction under s. 80CCA in respect of Rs. 40,000 being investments in NSS and deduction under s. 80CCB in respect of Canp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eposit with the bank amounting to Rs. 5,86,530 for five years. Interest on the above fixed deposit would be received by the assessee only on maturity of the F.D. account along with principal amount. However, for the year under consideration the assessee returned taxable income including inter alia interest of Rs. 81,600 on accrual basis, though this interest was not actually received. The assessee....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....When the assessee has shown interest income accruing on the FD account under the head 'income from other sources' it cannot be inferred that the investments made out of overdraft account against the FD has not come out of the income chargeable to tax. In fact the interest which accrued in the FD account amounts to Rs. 81,600 against which overdraft interest of Rs. 16,777 has been claimed by the as....