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2021 (6) TMI 189 - AT - Income TaxAddition made towards interest expenses claimed - case was selected for scrutiny under CASS - purchase of its business assets (land building, Plant and Equipment and Furniture & Fixtures) - CIT(A) observed that the assessee derived income from letting out the properties i.e. rental income, which has been shown as income from operations in the P&L Account and since the assessee has recognized revenue from operation and the same has been offered to tax, the AO is not justified in making the said disallowance - HELD THAT:- Assets have been leased by the assessee and income in the form of rental and maintenance charges have been credited to Profit and Loss and accordingly offered to tax. As the interest expenses incurred on the borrowing which are utilized for acquiring the assets, income derived from which is credited to P&L account and offered to tax. There is a direct nexus between the income offered and the expenditure claimed. CIT(A) considering the facts of the case of the assessee, directed the AO to delete the disallowance made towards interest paid. We do not find any reason to interfere with the order of the CIT(A) and upholding the same, we dismiss the ground raised by the revenue on this count. Appeal of the revenue is dismissed.
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