TMI Blog2019 (12) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... 013-14 and the AO had allowed the claim of interest expenditure to the extent of interest income received from various parties. Thus it appears that interest received by the assessee against these parties for the Assessment Year 2013-14 was accepted by the AO and corresponding interest was also allowed by the AO - The assessee challenged the said action of the AO restricting the claim of deduction on account of interest expenditure to the interest income. However, the ld. CIT(A) while passing the order dated 19-12-2017 for the Assessment Year 2013-14 has confirmed the action of the AO. The claim of interest expenditure of the assessee to the interest income of ₹ 3.57 lacs is allowed - the appeal of the assessee is partly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmation from the parties regarding receipt of interest. The ld. CIT(A) after considering the remand report confirmed the disallowance made by the AO. 2.3 Before the Tribunal, the ld.AR of the assessee contended that in the original confirmation filed before the AO the interest amount charged from each party was not specified and the assessee was not maintaining the books of account. However, before the ld. CIT(A) assessee filed the fresh confirmation letters from the borrowers showing interest amount charged from each party. The ld.AR of the assessee submitted that these confirmation letters were filed as additional evidences before the ld. CIT(A) which were referred to the AO for examination and filing of the remand rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd interest from parties. The assessee has claimed borrowed funds on which interest paid by the assessee was used for giving advance to the parties from whom interest income of ₹ 3.57 lacs was earned by the assessee. It is pertinent to note that an identical issue was also arisen for the Assessment Year 2013-14 and the AO had allowed the claim of interest expenditure to the extent of interest income received from various parties. Thus it appears that interest received by the assessee against these parties for the Assessment Year 2013-14 was accepted by the AO and corresponding interest was also allowed by the AO for which relevant portion of the assessment order at page 2 is reproduced as under:- 2. In the reply dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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