INCOME TAX ACT, 1961

Section 57

Income from other sources - Deduction under section 57 - Travelling expenses incurred by non-resident to manage house property in India -

Assessee-a non-resident individual was showing income from house property, short-term capital gain and income from other sources. He claimed deduction under section 57 on travelling expenses against compensation for amenities shown under other source of income. AO disallowed the said claim. Assessee submitted that the said expenses were related to management of his property in India. He further submitted that to manage the property, he had to travel in India and hence, the claim of travel expenses should be allowed against the amount received for the use of amenities of the property. Held: No travelling expenses could be allowed for assessee's international travel against income received related to house property in India. That was more so when the amount claimed was lump sum without any supporting evidence. Hence, assessee would not be entitled to claim deduction under section 57 on travelling expenses against the amount received from house property against use of amenities in the said house property.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 244A

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