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2018 (10) TMI 849 - AT - Income TaxEligibility for netting the interest received from the interest expenditure incurred by the assessee - Net interest income included in the income of the assessee - Held that:- The total interest has been received from the booking to the date of cancellation by the HUF of ₹ 20,71,233/- which is eligible for deduction for the payment of interest of ₹ 34,32,926/- as per section 57 of the Act because this interest has been received out of the said loan taken from ICICI Bank, which was paid by HUF to M/s. Ansal Properties & Infrastructure Ltd. through co-parcener. It is not the case of the Revenue that any such expenditure of interest incurred by the assessee was claimed by him in the preceding assessment years. Thus, there is direct nexus between earning of interest and expenditure of interest as per section 57 of the Act. Therefore, the assessee is entitled for netting of interest from the expenditure incurred. This principle is settled down in the case of ACG Associates Capsules (P) Ltd. vs. CIT [2012 (2) TMI 101 - SUPREME COURT OF INDIA] that the net interest income should be included in the income of the assessee - decided in favour of assessee.
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