Deduction u/s 57(iii) allowable if primary motive of expenditure is to earn income

Sh. Tejinder Singh Vs DCIT (ITAT Chandigarh) ITAT Chandigarh held that for claiming deduction u/s 57(iii) of the Income Tax Act primary motive of incurring such expenditure should be directly relatable to the earning of income falling under the head ‘income from other sources’. Such expenditure are deductible even if there is net loss. Facts- During the course of assessment proceedings, AO noted that the assessee had given his car on lease to the employer company and had received a lease rent of Rs. 4,08,000/- as ‘income from other sources’. The assessee had shown a net loss on account...