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2018 (7) TMI 947 - AT - Income TaxDisallowance of claim of expenses in respect of income from interest - necessary evidence to claim expenditure which was incurred wholly and exclusively for the purpose of earning such interest income - Held that:- In the present case, the assessee has not led any evidence regarding expenditure incurred to earn such interest income. The assessee has only relied on the order of the Tribunal and claimed 10% of the total interest income to be allowed as expenditure incurred towards earning of such interest income. But there is no basis for such estimation. The assessment in this year was made u/s. 143(3) of the Act by calling for details like books of accounts etc. and it was not best judgment assessment. Then, it is the duty of the assessee to produce necessary evidence in support of the claim of the assessee. It is the primary duty of the assessee to discharge the burden cast on it which it failed to do so. Simply, the assessee cannot claim deduction on estimated basis. The basis on which the Tribunal had come to its conclusion for the assessment year 1985-86 would not help this issue. In our opinion, it is appropriate to remit this issue to the file of the Assessing Officer to allow that expenditure supported by vouchers and bills for incurring of that expenditure. Addition as interest accrued - Held that:- Admittedly, this issue was considered by the High Court of Kerala in assessee’s own case [2017 (12) TMI 1364 - KERALA HIGH COURT] as held the interest income on Bank deposits is hypothetical income and that the assessee is entitled to get the interest excluded from assessment. The question raised is thus answered in favour of the Revenue and against the assessee.
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