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2012 (7) TMI 357 - ITAT, DELHIDisallowance of expenses - Held that:- Assessee failed to submit evidence in support of its claim as no material was brought on the record indicating that he has carried out business activities. In this year, it has only shown rental income and against such income, the expenses enumerated in section 24b can be allowed and the expenses like Loan processing fee, Sales-tax, Insurance Expenses and Bank charges as claimed by assessee cannot be allowed - decided against assessee. Disallowance of interest expenses - the borrowed capital was not used for business purposes - Held that:- If an assessee has borrowed funds, purchased a property/land, raised construction it or renovated it and then earned income, then expenses in the shape of interest etc. would be allowed as a deduction out of the rental income - assessee has filed a bank certificate to provide the transaction details and the accounts of the assessee for earlier years i.e. balance sheet, ledger account etc has alleged that it has raised unsecured loan from individual for construction, these loans were repaid by taking a term loan from the bank - remit the case back for verification and re adjudicate - in favour of assessee for statistical purposes.
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