Interest Paid on Security Deposit obtained from Members of Society is allowed u/s 57(iii)

Belvedere Tower Condominium Association Vs. ITO (ITAT Delhi) The issue under consideration is whether the Interest paid on security deposit obtained from the members of society is allowed as expense u/s 57(iii) of the Act? ITAT states that, the AO has gone wrong in rejecting this contention of the assessee society. The assessee society has obtained the interest bearing maintenance security called IBMS from the flat owners and such security deposit has been deposited with the Bank on which interest has been earned. Thus, there is a direct nexus in earning interest on such fixed deposit with Ban...