TMI Blog2021 (9) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... of opening balance, addition, repayment, interest and rate of interest and also the date-wise details of interest received during the year and also considering the fact that no abnormal rate of interest has been paid on the loans taken during the year and thus are inclined to hold that the alleged claim of interest expenditure has nexus to the interest income earned from Sneha Medicare Pvt. Ltd. and thus deserves to be allowed u/s 57(iii). Unexplained cash credit u/s 68 - Disallowing unsecured loan - HELD THAT:- The confirmation of accounts has also been filed which contains the complete address and PAN No. of the cash creditor. Non-filing of return in a particular year cannot be held to be a sole basis to treat the cash credit as unex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 31-8-2021 - Shri Saktijit Dey (Judicial Member) And Shri Manish Borad (Accountant Member) For the Assessee : Mr. Mehul Shah, AR For the Revenue : Ms. Smita Verma, DR ORDER PER MANISH BORAD, A.M. The present appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-9, Mumbai [in short CIT(A) ] for the assessment year 2013-14 dated 26.08.2019 and arises out of assessment completed u/s 143(3) of the Income Tax Act, 1961 (in short the Act). 2. The grounds of appeal filed by the revenue read as under : 1. The Ld. Assessing Officer erred in disallowing interest paid on loan taken for ₹ 13,49,531/-. The same interest is actually paid on borrowings against inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t expense of ₹ 1,08,105/- disallowance of interest expenditure of ₹ 13,49,531/- and addition u/s 68 of the Act for unexplained loan of ₹ 5,00,000/- but failed to succeed on any of the ground as the view taken by the Ld. Assessing Officer was confirmed after considering the submissions of the assessee as well as the remand report of the Assessing Officer dated 26.06.2019. 5. Aggrieved assessee is now in appeal before this Tribunal Ld. counsel for the assessee apart from referring to the submissions made before both the lower authorities also took us through paper book filed on 16.12.2020 from page 12 para 74 containing various documents as well as the decisions relied by him. 6. Per contra Ld. DR vehemently argued sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing complete details of funds received during the year and their movement. Ld. CIT(A) has also appreciated the fact that during the year the appellant has paid interest to 41 parties out of which 34 were paid for unsecured loan taken in preceding years and in 7 cases on fresh loan received during the year and also stated that in 13 cases the loan was repaid during the year. Thus looking to the overall details filed before us we find that major amount of loans were taken in the preceding years and amount advanced to M/s Sneha Medicare Pvt. Ltd. The assessee is consistently claiming interest expenditure against the interest income. There is a positive interest income at the end of the year. Nexus of amount received during the year to the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that she was having sufficient bank balance and there was no immediate cash deposit in the bank account before the issuance of cheque to the assessee. Immediately before the loan was given to assessee there were credits in the bank account of Vanleela P. Mehta through transfers from other sources at ₹ 2,50,000/- on 31.03.2012 ₹ 85,000/- on 16.05.2012 and ₹ 1,55,000/- on 10.05.2012. The flow of transactions in the bank statement shows that there are regular transaction of debit and credit. Vanleela P. Mehta has filed the return of income for AY 2014-15 and 2018-19. The confirmation of accounts has also been filed which contains the complete address and PAN No. of the cash creditor. Non-filing of return in a particular year ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
