AO disallows S. 57 deduction claim on interest income from Personal funds: ITAT Quashes disallowance

The Income Tax Appellate Tribunal (ITAT) quashed the Assessing Officer’s (AO) disallowance of a Section 57 deduction claimed on interest income from personal funds. The ITAT ruled in favor of the taxpayer, allowing the deduction. The AO had disallowed the deduction on the grounds that the interest income was from personal funds and not related to business income. However, the ITAT found that the interest income was eligible for deduction under Section 57, which allows deductions for expenses incurred to earn income from other sources. This ruling provides clarity on the eligibility of interest income for deductions under Section 57 and supports taxpayers in claiming legitimate deductions.