Held, that the loss of interest income on account of premature encashment of fixed deposits was not an expenditure incurred by the assessee to earn interest income. Therefore, CIT (A) was justified in disallowing deduction. Furthermore, assessee had failed to produce any evidence before the Assessing Officer or before the Commissioner (Appeals) to prove that the loan taken had connection with earning of interest income. Thus, deduction was rightly disallowed by the CIT (A). (AY. 2014-15).
Jatinder Kumar Suri v. Dy. CIT (IT) (2023)101 ITR 47 (SN) (Delhi) (Trib)
S. 57 : Income from other sources-Deductions-Premature encashment of Fixed Deposit-Loss on interest-No expenditure incurred to earn interest income-Deduction disallowed-No evidence that loan taken from third party with whom deposit placed had connection with earning of any interest.[S. 56, 57(iii)]