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2019 (1) TMI 527 - AT - Income TaxAdjustment of interest expenditure against interest income - Held that:- It is noticed that this issue is pertained to the assessing of income u/s. 50C of the act on the additional stamp duty of ₹ 13,995/- paid for two plots by the assessee on 20/07/2009. During the course of appellate proceedings, the ld. counsel could not controvert the impugned addition with any relevant material therefore this ground of appeal of the assessee is dismissed. Disallowance of interest expenditure - AO observed that assessee has shown investment in agricultural land and investment in shares and stated that against interest income of ₹ 5,88,073/- expenses of ₹ 90,389/- was to be allowed - Held that:- As examined the contention of the assessee claiming that her own capital as on 31-03-2010 was to the amount of ₹ 22870663/- and investment in the fixed assets and shares and LIC were to the amount of ₹ 3,95,54,837/-. As demonstrated that 58% of the investment was made from her own fund and remaining 42% investment was made from the borrowed funds. As contended that 42% of the interest expenses out of the total interest expenses of ₹ 11,06,847/- can be disallowed. It is noticed that the above facts was not disproved at the time of the appellate proceedings by the CIT(A), therefore, we find merit in the contention of the assessee and restrict the disallowance of interest expenses to the amount of ₹ 4,64,876/- and the remaining interest payment of ₹ 6,41,971/- is to be set off against the interest income. Accordingly, the appeal of the assessee is partly allowed.
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