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2018 (5) TMI 1092 - GUJARAT HIGH COURTAdditions u/s 68 - Disallowance of interest income - loan transaction itself was not genuine - Held that:- AO and CIT(Appeals) had correctly come to the conclusion that loan transaction itself was not genuine, the question of recognizing interest expenditure on such loan transaction would not arise. Had the Tribunal disturbed such findings and thereafter given the relief to the assessee, the issue would stand on a different footing. Instead the Tribunal merely proceeded on its declaration for the earlier assessment years that the addition under section 68 would not survive since it was not relatable to any material found during the search. Tribunal's findings and conclusions for the earlier years concerning the assessments under section 153A were independent and severable from the exercise undertaken by the AO for the current assessment year 2010-2011 during the course of scrutiny assessment under section 143(3). AO had come to independent findings which were confirmed by CIT(Appeals). The Tribunal had not disturbed these findings. Deletion of disallowance of interest was therefore, not correct. - Decided in favour of revenue
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