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2015 (4) TMI 145 - AT - Income TaxDisallowing interest paid having no nexus with the interest income earned - funds borrowed from individual lenders have been advanced to M/s. SSAPL and has earned interest income on funds so borrowed - Held that:- It is an undisputed fact that the interest income earned by the assessee is to be assessed as "income from other sources". If any expenditure has been incurred for earning of such income, the same is to be allowed as deduction under section 57(iii), while computing the taxable income. From the proximity of the dates, it can be seen that there is a direct nexus between the loan taken and loan given. Similarly, the assessee has received sum of ₹ 15 lakhs on 27th March 2008 and 28th March 2008, from three persons and the same have been given to the company on 28th March 2008 and 2nd April 2008. At that time also, a sum of ₹ 12,90,000, which was debited by way of autosweep by the bank and the same has been remitted back at the time of clearance of the cheque. Thus, the contention of the learned counsel before us appears to be factually correct and the findings of the learned Commissioner (Appeals) as noted above, gets vitiated from the facts and material placed on record. Thus, we set aside the impugned order passed by the learned Commissioner (Appeals) and hold that there is a direct nexus between the loan received and the loan given and, therefore, the interest paid by the assessee has to be allowed from the interest income as there is a direct nexus. - Decided in favour of assessee. Disallowance of bank charges and profession fees paid - Held that:- The amount of bank charges for a sum of ₹ 280, is also directly relatable to earning of the income from other sources. However, regarding professional fees of ₹ 3,750, nothing has been placed before us on record as to what was the nature of such professional fees, as it has neither been mentioned by the Assessing Officer / learned CIT(A) nor by the assessee. In the absence of any such explanation or record, the disallowance with regard to professional fees of ₹ 3,750, stands confirmed. In the result, the disallowance of interest of ₹ 4,48,640, and bank charges of ₹ 820, stands deleted and the claim of professional fees of ₹ 3,750 stands confirmed - Decided partly in favour of assessee.
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