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2023 (9) TMI 213 - AT - Income TaxDisallowance of interest on unsecured loan creditors which was subject to TDS - AR emphasized that no fresh loans were obtained from the unsecured loan creditors during the financial year 2011-12 - HELD THAT:- AO has not disputed on the genuineness of loans and the loan funds were utilized wholly and exclusively for the purpose of business. AR emphasized that the own funds are more than the loan funds and relied on the judicial decisions. Considering the facts, circumstances and the information filed in the course of hearing find that there is no dispute with respect to the interest paid to the unsecured loan creditors on the opening balances and further the revenue has been accepting the interest claim in earlier years. Accordingly, the order of the CIT(A) on this disputed issue is set aside and direct the Assessing officer to delete the disallowance of interest on unsecured loans For interest on housing loan paid to LIC Ltd and HDFC Ltd - AR filed the evidences of interest paid to LIC Ltd loans and supported with the loan repayment and loan interest receipts and in the case of HDFC Ltd, statement of account was filed. Considering all there is no dispute that the assessee has let out the property and derived the rental income and the assessee has substantiated the submissions with the documentary evidences. Accordingly, direct the AO to delete the disallowance of interest and allow the grounds of appeal in favour of the assessee.
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