Dakshin Kalikata Sansad vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Dakshin Kalikata Sansad, a Trust registered under the Societies Registration Act, XXI of 1860, filed its return of income for the assessment year 2018-19 disclosing a total income of Rs.38,410/-. The case was selected for complete scrutiny under CASS. The assessee claimed depreciation on assets amounting to Rs.15,39,008/-, which was deemed inadmissible. The assessee also claimed interest income of Rs.41,48,848/- under the head ‘income from other sources’ and claimed a deduction of Rs.41,06,443/- under section 57 of the Act. The Assessing Officer disallowed the expenditure claim and determined the taxable income at Rs.41,44,8848/-. The assessee appealed this decision, which was partly allowed by the CIT(Appeals). The assessee then appealed to the Tribunal, arguing that the salary expenditure should be allowed.…

Legal Issues

• 1. Whether the salary expenditure claimed by the assessee is allowable under section 57 of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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