About penalty u/s 271(1)(c)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 July 2013
Dear sir
we have taken a loan against fdr and we invest this loan amount in our business as a additional capital. and we show interest on loan against fdr as a deduction in our computation as per our opinion by sec 57 of income tax that this amt of interst is allowed for deduction but we got a order from i/tax deptt. that this is not allowed for deduction please tell me how can we get relief from penalty.
we have taken a loan against fdr and we invest this loan amount in our business as a additional capital. and we show interest on loan against fdr as a deduction in our computation as per our opinion by sec 57 of income tax that this amt of interst is allowed for deduction but we got a order from i/tax deptt. that this is not allowed for deduction please tell me how can we get relief from penalty.
08 July 2013
In my view sec 57 says exp directly incurred for earning income from other source only is allowed as dedcution.
In your case there is no direct income from other source but u invested the loan in busines so u can take deduction under sec 36 else under sec 37 against business income.
In your case there is no direct income from other source but u invested the loan in busines so u can take deduction under sec 36 else under sec 37 against business income.
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