GURGAON ONE RESIDENT WELFARE ASSOCIATION,GURGAON vs. ITO-WARD 1(5),GURGAON, GURGAON

ITA 4145/DEL/2025Status: DisposedITAT Delhi13 March 2026AY 2017-18Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the interest expenditure incurred by the assessee was directly related to earning the interest income and was allowable as a deduction under Section 57(iii) of the Income Tax Act. The Tribunal followed its own prior decisions on similar matters.

What were the facts?

The assessee, a Resident Welfare Association, claimed a deduction for interest distributed to its members from interest earned on bank deposits. The Assessing Officer disallowed this deduction, and the CIT(A) confirmed the addition. The assessee appealed to the ITAT.

What were the issues?

Whether interest distributed by a Resident Welfare Association to its members from interest earned on bank deposits is an allowable deduction under Section 57(iii) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 57

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Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Appellant: Shri M.R. Sahu, CA, Shri Manish Gupta, Sr. DR
Hearing: 09.03.2026Pronounced: 13.03.2026

PER VIMAL KUMAR, JM: The appeals filed by the Assessee are against orders dated 13.06.2025 of the Learned Commissioner of Income Tax (Appeals)-Mumbai [hereinafter referred to as ‘the Ld. CIT(A)’] passed u/s 250 of the Income Tax Act, 1961, [hereinafter referred to as ‘the Act’] arising out of assessment orders dated 28.12.2018 and 13.11.2019 of Ld. Assessing Officer, Ward-1(5), Gurgaon for Assessment Years 2016-17 & 2017-18 respectively.

Therefore, these appeals were taken up together and heard. All are being disposed off by th

The order continues below.

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