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2021 (6) TMI 530 - AT - Income TaxDisallowing the deductions u/s 57(iii) - interest expenses incurred which were claimed against interest income earned by the assessee and returned under the head “ income from other sources” - Case of assessee was selected for limited scrutiny under CASS for one of the reason being large deduction claimed u/s 57 - HELD THAT:- As pointed out to both the Ld. DR and the Ld. Counsel for the assessee that in the impugned case it appeared that the issue had been adjudicated dehors the facts relating to it. That despite the specific submissions of the assessee before the lower authorities of the investment having been made out of interest bearing funds and the assessee having filed certain copies of accounts relating to the loan taken and investment made, the findings of the lower authorities that the assessee was unable to establish nexus between the two, does not deal with the aforestated submissions at all. At the same time, assessee was also unable to demonstrate before us as to how the submissions of the assessee justified his claim, though he contended that this was not the only year in which the assessee had made this claim and that similar claim had been made in earlier years also since a portion of the investment had been made out of loans taken in earlier years. In the absence of the necessary facts relating to the issue, we are of the view that it would not be fair to adjudicate the issue either ways. That it would be in the interest of justice to restore the matter to the AO for reexamination after considering all facts relating to it. Issue of claim of deduction u/s 57 (iii) is restored back to the AO to be decided in accordance with law after considering all facts relating to the same - Decided in favour of assessee for statistical purposes.
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