Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 557 - AT - Income TaxConfirmation of disallowance of interest u/s 40A(2)(b) of the Act – Held that:- After considering the totality of the facts of the case, in the interest of justice the disallowance is restricted to the interest made in excess of 15% - thus, the AO is directed to recompute the disallowance – Decided partly in favour of Assessee. Disallowance of interest u/s 24(b) of the Act - Loan taken for construction of self- occupied property – Held that:- The AO has given finding on fact that the properties were not constructed, therefore in view of the Explanation attached to section 24(b) of the Act, the assessee is not entitled for deduction of interest – there was no infirmity in the order of the CIT(A) as the interest is claimed by the assessee is not allowable in view of the fact that the Explanation to clause(b) of section 24 of the Act speaks about the constructed property - the property of the assessee has not been constructed – Decided against Assessee. Disallowance of unexplained investment – Held that:- The AO has given a finding that the interest- bearing funds were utilized for construction of bungalows which was not for business purpose - the assessee is having business of transport, thus, the addition made by the AO on the basis that the assessee has utilized the borrowed fund for non-business purposes cannot be find any fault – Relying upon S.A.Builders vs. CIT [2006 (12) TMI 82 - SUPREME COURT] - the amount was not utilized for business purpose – Decided against Assessee.
|