Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 811 - ITAT MUMBAIDisallowance of interest expenditure - deduction of interest paid against the interest received denied - assessee has not proved the nexus between the interest income and interest expenditure - HELD THAT:- As assessee has furnished the ledger confirmation of the loan creditors as well as the loan debtor, assessee has also furnished its bank statement and bank ledger in order to substantiate the nexus between the interest income and interest expenditure. From the perusal of aforesaid documents, we find merit in the submissions of the assessee that the funds received on which interest was paid were used for the purpose of granting the loan to its group concern on which interest was earned. Accordingly, interest expenditure is wholly and exclusively for the purpose of earning interest income. We direct the AO to grant the deduction of interest expenditure paid by the assessee, while computing the income under the head “income from other sources”. Decided in favour of assessee.
|