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2020 (11) TMI 603 - ITAT BANGALOREDisallowance of deduction on account of interest paid on borrowed funds u/s. 36(1)(iii) - assessee brought to our notice that own funds available with the assessee were much more than the amounts borrowed - HELD THAT:- In light of the law as explained by in Chaitanya Properties Pvt.Ltd.[2018 (6) TMI 1237 - KARNATAKA HIGH COURT] and in the light of admitted factual position that own funds were much more than the borrowed funds, we are of the view that disallowance of interest expenditure cannot be sustained and the same is directed to be deleted. The first issue is accordingly decided in favour of the assessee. Unexplained fixed deposit with ICICI Bank - AO was in possession of the Annual Information Report [AIR] which mentioned that assessee had two Term Deposits in ICICI Bank - HELD THAT:- The fact that Term Deposits reflected in the AIR were in the M G Road Br., Bangalore does not mean that the deposits in M G Road Br. Bangalore is in the name of assessee. Perusal of the letter dated 22.12.2012 by ICICI Bank, Alwarthirunagar Branch, Chennai does not show that the Term Deposits is in the name of assessee - issue should be set aside to the AO for a fresh consideration to ascertain the correct facts with regard to Term Deposits in M G Road Br. Bangalore, as to whether the same is in the name of assessee. If so, then the assessee should explain the deposit in the parameters laid down u/s. 69 - we set aside the order of the CIT(Appeals) on this issue and remand it to the AO for fresh consideration in light of the observations made in this order.
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