Section 57(iii) of the Income Tax Act

The decision most relied on for Section 57(iii) is CIT v. Rajendra Prasad Moody (115 ITR 519), cited in 386 of the 185 judgments on BharatTax that turn on this section.

Leading authorities on Section 57(iii)

CIT v. Rajendra Prasad Moody
115 ITR 519 · 1978 · Supreme Court
386
citing judgments

For deductions under Section 57(iii) relating to "Income from Other Sources," an expenditure is allowable if it is laid out wholly and exclusively for the purpose of making or earning such income, even if no income is actually earned in that previous year.

Shambhu Investment (P) Ltd. v. CIT
263 ITR 143 · 2003 · Supreme Court
181
citing judgments

Income derived from letting out property along with incidental use of furniture, fixtures, and common facilities is assessable as 'income from house property' and not 'business income' when the prime object is merely to let out and not to exploit the property as a business asset.

Totgars Co-operative Sale Society Ltd. v. ITO
58 Taxmann.com 35 · 2015 · High Court
114
citing judgments

When a co-operative society earns interest on deposits with scheduled banks, this income is assessable under "Income from other sources" (Section 56), and the society is entitled to deduct related administrative and proportionate expenses under Section 57 to tax only the net interest income.

Chelmsford Club v. CIT
243 ITR 89 · 2000 · Supreme Court
100
citing judgments

Income arising from mutual activities carried out by clubs or associations solely among their members is not assessable for income tax, as it does not constitute income from a trade or business due to the principle of mutuality.

CIT v. V.P. Gopinathan
248 ITR 449 · 2001 · Supreme Court
66
citing judgments

Interest paid on a loan taken against the security of a fixed deposit cannot be set off against or reduced from the interest income earned on that fixed deposit. The Income-tax Act does not permit such netting.

Punjab Stainless Steel Inds v. CIT
324 ITR 396 · 2010 · High Court
66
citing judgments

This case establishes that merely having sufficient interest-free own funds does not automatically prevent interest disallowance on interest-free advances; the assessee must affirmatively prove the business or commercial expediency of such advances.

79 Taxman 378/216 ITR 548 (Bom.) 4. CIT v. Macbrout Engineering (P.) Ltd.
52 Taxmann.com 219 · 2014 · High Court
43
citing judgments
CIT v. Amritaben R. Shah
238 ITR 777 · 1999 · High Court
37
citing judgments

Expenditure incurred to acquire controlling interest in a company, rather than to earn dividend income, is not allowable as a deduction under section 57(iii) as it is in the nature of capital expenditure.

BSES Rajdhani Power Ltd. v. PCIT
399 ITR 228 · 2017 · High Court
30
citing judgments

Revision under Section 263 is justified when the Assessing Officer fails to consider a significant portion of a claim, such as depreciation, leading to an erroneous assessment that is prejudicial to the revenue.

CIT v. Rampur Timber & Turnery Co. Ltd.
129 ITR 58 · 1981 · High Court
28
citing judgments

Expenditure incurred for the purpose of earning income is deductible under Section 57(iii) even if no income is actually earned. The earning of income is not a pre-condition for allowing the deduction.

Judgments on Section 57(iii)

ISCON HEIGHTS OWNERS ASSOCIATION,VADODARA vs. ITO, WARD-1(2)(1), VADODARA

In the result, the appeal of the assessee is allowed

ITA 2188/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad16 Mar 2026AY 2018-19

Bench: Ms. Suchitra Kambleassessment Year 2018-19

For Appellant: Shri Parin Shah, A.RFor Respondent: Smt. Mamta Singh, Sr. D.R
Section 143Section 57

ROHIT AGGARWAL,AMBALA vs. DCIT, CENTRAL CIRCLE-2, CHANDIGARH, DCIT, CENTRAL CIRCLE, CHANDIGARH

The appeal stands partly allowed

ITA 428/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh09 Mar 2026AY 2016-17

Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Rajiv Goel & Sh. Dhruv Goel (CA) – Ld. ARsFor Respondent: Smt. Meenkashi Vohra (CIT) - Ld. DR (Virtual)
Section 131Section 153A(1)(b)

ROHIT AGGARWAL,AMBALA vs. DCIT, CENTRAL CIRCLE-2, CHANDIGARH, DCIT, CENTRAL CIRCLE CHANDIGARH

The appeal stands partly allowed

ITA 427/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh09 Mar 2026AY 2015-16

Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Rajiv Goel & Sh. Dhruv Goel (CA) – Ld. ARsFor Respondent: Smt. Meenkashi Vohra (CIT) - Ld. DR (Virtual)
Section 131Section 153A(1)(b)

ROHIT AGGARWAL,ROHIT AGGARWAL, AMBALA CITY vs. DCIT, CENTRAL CIRCLE-2, CHADIGARH, DCIT, CENTRAL CIRCLE CHANDIGARH

The appeal stands partly allowed

ITA 324/CHANDI/2025[2013-14]Status: DisposedITAT Chandigarh09 Mar 2026AY 2013-14

Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Rajiv Goel & Sh. Dhruv Goel (CA) – Ld. ARsFor Respondent: Smt. Meenkashi Vohra (CIT) - Ld. DR (Virtual)
Section 131Section 153A(1)(b)

DCIT 2(3)(1), MUMBAI vs. TATA STEEL LTD, MUMBAI

In the result, appeal of the Revenue is dismissed and that of the assessee is allowed

ITA 3555/MUM/2016[2008-09]Status: DisposedITAT Mumbai20 Feb 2026AY 2008-09
For Appellant: Shri J.D. Mistri, Sr. Advocate and Ms. Jasmin Amalsadvala, AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 143(3)Section 144Section 147Section 148Section 151Section 36(1)(iii)Section 57

TATA STEEL LTD,MUMBAI vs. ASST CIT 2(3), MUMBAI

In the result, appeal of the Revenue is dismissed and that of the assessee is allowed

ITA 3294/MUM/2016[2008-09]Status: DisposedITAT Mumbai20 Feb 2026AY 2008-09
For Appellant: Shri J.D. Mistri, Sr. Advocate and Ms. Jasmin Amalsadvala, AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 143(3)Section 144Section 147Section 148Section 151Section 36(1)(iii)Section 57

PIYUSH SUBHASH WADHWA,MUMBAI vs. CIT(APPEAL), DELHI

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 6803/MUM/2025[2016-17]Status: DisposedITAT Mumbai16 Feb 2026AY 2016-17

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarpiyush Subhash Wadhwa V/S. Commissioner Of Income 64, Ashirwad Icici बनाम Tax (Appeal)National Apartments, Gd Ambekar Appeal Faceless Centre, Marg, Naigaon Dadar(E), Delhi Mumbai – 400 014, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aagpw3024N Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Shri Sanjay Shah, ARFor Respondent: Shri Virabhadra Mahajan, (Sr. DR)
Section 143(2)Section 143(3)Section 154Section 282A(1)Section 57

MARATHI BANDHKAM VYA vs. AYIK ASSOCIATION,PUNEVS.ITO, EXEMPTION WARD-1(1),PUNE, PUNE

In the result, the appeal filed by the assessee is partly allowed

ITA 2310/PUN/2025[2018-19]Status: DisposedITAT Pune10 Feb 2026AY 2018-19
For Appellant: Shri Suhas P. BoraFor Respondent: Shri Milind Debaje (Virtual)
Section 143(2)Section 143(3)

SHREE BILIMORA VIBHAG ANAVIL MANDAL NUTAN PARK, SHANTI NIKETAN SOCIETY, MORARJI DESAI MARG BILIMORA NA vs. ARI,NAVSARIVS.CIT(EXEMPTION), SURAT

In the result, the appeal of the assesse is allowed for statistical purpose

ITA 10/SRT/2025[2014-15]Status: DisposedITAT Surat29 Jan 2026AY 2014-15

Bench: Dr. Dinesh Mohan Sinha & Shri Bijayananda Pruseth

For Appellant: Shri Sujesh C. Suratwala, CAFor Respondent: Shri Ajay Uke, Sr. DR
Section 11Section 143(1)Section 57

DEEPAK BATRA,GHAZIABAD vs. CIRCLE 5(1)(1), NOIDA

Appeal is allowed

ITA 8331/DEL/2025[2018-19]Status: DisposedITAT Delhi29 Jan 2026AY 2018-19

Bench: Sh. Satbeer Singh Godaraita No. 8331/Del/2025 : Asstt. Year: 2018-19 Deepak Batra, Vs Cit(A)/Nfac, R-9/5, Raj Nagar, Delhi Ghaziabad-201001 (Appellant) (Respondent) Pan No. Ahqpb0224N Assessee By: Sh. Sandeep Vijh, Ca Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 29.01.2026 Date Of Pronouncement: 29.01.2026 Order This Assessee’S Appeal For Assessment Year 2018-19 Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2025-26/1081748523(1) Dated 14.10.2025, In Proceedings U/S 143(3) Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. Sandeep Vijh, CAFor Respondent: Sh. Manoj Kumar, Sr. DR
Section 143(3)Section 57

SHRI ANKUR CHANDULAL SHAH,MUMBAI vs. THE ACIT, CIRCLE-19(1), MUMBAI

In the result, the appeal of the assessee is allowed

ITA 5901/MUM/2025[2017-18]Status: DisposedITAT Mumbai27 Jan 2026AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)

Section 144Section 57

GUNMALA DEVI JAIN,KOLKATA vs. D.C.I.T., CIRCLE - 29, KOLKATA

ITA 14/KOL/2025[2015-2016]Status: DisposedITAT Kolkata19 Jan 2026AY 2015-2016

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2015-16 Gunmala Devi Jain…..……..……..……….………….……….……….……Appellant 401, Wing-B, Windsor Palace, 6A Iron Side Road, Ballygunge, Kol-700019.. [Pan: Acrpj8161E] Vs. Dcit, Circle-29, Kolkata……………………………..…….....……...…..…..Respondent Appearances By: Shri Miraj D Shah, Ar Appeared On Behalf Of The Appellant. Shri Sandeep Kr. Mehta, Addl. Cit, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 06, 2026 Date Of Pronouncing The Order : January 19, 2026 Order Per Pradip Kumar Choubey: This Appeal Filed By The Assessee Is Directed Against The Order Dated 30.05.2024 Of The Nfac, Delhi (Hereinafter Referred To As The “Cit(A)”) Passed U/S 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2015–16. 2. The Appeal Has Been Filed By The Assessee With A Delay Of 156 Days & The Assessee Has Filed A Petition For Condonation Of The Delay. After Going Over The Said Petition, We Find Sufficient Reasons Behind The Delay Which Are Beyond The Control Of The Assessee & Consequently, The Delay In Filing The Appeal Is Hereby Condoned & We Proceed To Dispose Of The Appeal On Merits.

Section 143(3)Section 250Section 54Section 57

DEVINDER AJMANI,DELHI vs. ASSESSING OFFICER, WARD 11(1), DELHI

In the result, impugned order is set aside and appeal of the assessee is

ITA 6390/DEL/2025[2020-21]Status: DisposedITAT Delhi14 Jan 2026AY 2020-21

Bench: Shri Vikas Awasthyआअसं.6390/दिल्ली/2025 (नि.व. 2020-21)

Section 57

LAXMI VENKATESH CREDIT CO-OPERATIVE SOCIETY LIMITED,UDUPI vs. INCOME TAX OFFICER, WARD-1 & TPS , UDUPI

In the result, the appeal filed by the assessee is dismissed

ITA 2046/BANG/2025[2018-19]Status: DisposedITAT Bangalore06 Jan 2026AY 2018-19

Bench: Shri Prashant Maharishi, Vice – & Shri Soundararajan K.Assessment Year : 2018-19

For Appellant: None
Section 56Section 57Section 80P(2)(a)

MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED,MUMBAI vs. NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI, DELHI

In the result, the appeal by the assessee is partly allowed

ITA 1366/MUM/2024[2021-22]Status: DisposedITAT Mumbai31 Dec 2025AY 2021-22

Bench: Shri Sandeep Singh Karhailshri Makarand Vasant Mahadeokarmaharashtra Airport Development Company World Trade Centre, Tower-1, 8Th Floor, Cuffe Parade, Mumbai - 400005 ............... Appellant Pan: Aadcm9623M

For Appellant: Shri Rushab MehtaFor Respondent: Shri Vivek Perampurna, CIT-DR
Section 143(3)Section 250Section 57

GUNEET KAUR CHADHA,DELHI vs. ITO WARD-12(2), DELHI

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 3005/DEL/2025[2020-21]Status: DisposedITAT Delhi31 Dec 2025AY 2020-21

Bench: Shri M. Balaganesh & Ms. Madhumita Roymrs. Guneet Kaur Chadha, Vs. Income Tax Officer, House No. 190, Third Floor, Ward-12(3), Jor Bagh, New Delhi- Delhi 110003 (Appellant) (Respondent) Pan:Acwpc9064A Assessee By : Shri Tarandeep Singh, Adv Shri Sandeep Yadav, Adv Revenue By: Shri Om Prakash, Sr. Dr Date Of Hearing 12/11/2025 Date Of Pronouncement 12/11/2025

For Appellant: Shri Tarandeep Singh, AdvFor Respondent: Shri Om Prakash, Sr. DR
Section 143(3)Section 57

SHRI. MAHENDRA HARICHAND SHAH,MUMBAI vs. INCOME TAX OFFICER - WARD 5(1)(1),, AAYAKAR BHAVAN, MUMBAI

In the result, appeal filed by the assessee stands partly allowed

ITA 4371/MUM/2025[2013-14]Status: DisposedITAT Mumbai30 Dec 2025AY 2013-14

Bench: Shri Narender Kumar Choudhryassessment Year: 2013-14

For Appellant: Shri Vimal Punmiya, Ld. CAFor Respondent: Shri Sushil Bhagwat Shendge, Ld. Sr.DR
Section 143(1)Section 250Section 57

WESTCOURT HOSPITALITY PVT LTD,NEW DELHI vs. DCIT, CIRCLE-25(1), DELHI

In the result appeal of the assessee is allowed

ITA 3351/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-25(1), NEW DELHI, NEW DELHI vs. WESTCOURT HOSPITALITY PRIVATE LIMITED, NEW DELHI

In the result appeal of the assessee is allowed

ITA 3294/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Dec 2025AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year: 2018-19] Acit, Circle 25(1), Room Vs M/S. Westcourt Hospitality No. 192A, Cr Building, Pvt. Ltd. Ip Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070. Pan-Aaacw8734G Appellant Respondent [Assessment Year: 2018-19] M/S. Westcourt Hospitality Vs Acit, Circle 25(1),Room Pvt. Ltd. No. 192A, Cr Building, Ip 4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070. Pan-Aaacw8734G Appellant Respondent

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

PUBLIC POLITICAL PARTY,DELHI vs. DCIT, CENTRAL CIRCLE 31, DELHI

ITA 2985/DEL/2025[2022-23]Status: DisposedITAT Delhi17 Dec 2025AY 2022-23

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla

For Appellant: Sh. Mohan Lal Sharma, AdvFor Respondent: Sh. Dayainder Singh Sidhu, CIT
Section 132Section 13ASection 143(3)Section 147Section 29ASection 68

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