Allowing the appeal of the assessee the Tribunal held that, the interest income is to be adjusted against the expenditure incurred by the assessee during the year, accordingly the professional fees paid to its chartered Accountant is held to be allowable as deduction. Interest on deposit is not per se a separate source of income and must be taxed only after allowing administrative expenses of a society. Followed Nivedita Garden Condominium v ITO (ITA No. 120/PN. 2009) (ITA No 1390 /Pun/2019, dt 21-01-2020) (AY. 2014-15)
Maharashtra Police Mega City Co-Operative Society Ltd. v ITO (Pune) (Trib.) (2020) CTCJ-Feb-P.122
S. 57 : Income from other sources-Deductions–Co-Operative Housing Society-Administrative expenses are allowable against the interest on fixed deposit. [S.56]