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2016 (3) TMI 633 - AT - Income TaxDisallowance of the premium paid - Held that:- Since the assessee has ignored the premium paid on purchase of bonds and claimed premium portion also as interest, the Assessing Officer has not accepted and therefore, the difference of income payable of ₹ 20,35,000/- was added to the income of the assessee under the head "income from other sources". After considering the submissions of the assessee and also considering the facts of the case, the ld. CIT(A) has observed that the assessee has already paid the interest component of ₹ 0.24 crores and ₹ 1.14 crores along with the face value and premium on the date of maturity, the assessee has received an amount equal to the immaturity value of the bonds. Since the assessee has already paid interest to the previous bond holders, the difference amount between the interest received by the assessee on the maturity date and interest paid on the purchase date by the assessee was treated as income in the hands of the assessee. Further, while redeeming the bonds, the ICICI Ltd. has also done TDS on the maturity value minus face value. Since the assessee has ignored the premium paid on purchase of bonds and claimed the same also as interest, the ld. CIT(A) has rightly observed that it is not an allowable expenditure. Accordingly, the ld. CIT(A) correctly sustained the addition made by the Assessing Officer. Under the above facts and circumstances, we find no infirmity in the order passed by the ld. CIT(A). - Decided against assessee
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