TMI Blog2022 (9) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... 8223;. Since the interest paid by the assessee during the year was more than the interest earned under this head, income from other sources was declared at loss - We find that during the course of assessment proceedings, the Authorised Representative for the assessee admitted that the net excess interest paid resulting in loss under the head income from other sources does not fit into the conditions of section 57(iii) or section 36(1)(iii) and agreed for disallowance while computing income from other sources. It is the plea of the assessee that the assessee has not accepted the aforesaid disallowance and the same was challenged before the learned CIT(A). From the perusal of the impugned order we find that the learned CIT(A) has noted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and in law, the learned CIT(A) erred in upholding the action of the Assessing Officer of disallowing interest expenditure of Rs.5,37,438. 3. The only grievance of the assessee is against disallowance of interest expenditure of Rs. 5,37,438. 4. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is an individual and has filed his return of income, for the year under consideration, on 28/11/2014, declaring total income of Rs. 13,36,840. The return filed by the assessee was selected for scrutiny and statutory notice under section 143(2) of the Act was issued. Thereafter, notice issued under section 142(1) of the Act along with questionnaire was served on the assessee calling for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36(1)(iii) of the Act and agreed for disallowance of the aforesaid sum. Accordingly, the Assessing Officer vide order dated 08/12/2016, passed under section 143(3) of the Act made an addition of Rs. 537,438, under the head income from other sources‟. In appeal, learned CIT(A) dismissed the appeal filed by the assessee. Being aggrieved, assessee is in appeal before us. 5. During the course of hearing, learned Authorised Representative ( learned AR‟) submitted that interest-free loans was received as well as given by the assessee. Further, assessee‟s own funds and interest free loans available with the assessee are more than the loans on which interest was paid by the assessee. The learned AR placed reliance upon the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e head income from other sources does not fit into the conditions of section 57(iii) or section 36(1)(iii) and agreed for disallowance of Rs. 5,37,438, while computing income from other sources. It is the plea of the assessee that the assessee has not accepted the aforesaid disallowance and the same was challenged before the learned CIT(A). From the perusal of the impugned order we find that the learned CIT(A) has noted that the assessee has filed different balance sheets at different times, which are contradictory in nature. The relevant findings of learned CIT(A) vide impugned order are as under: 4.4. I have considered the facts on record and submissions filed carefully. It is noted that in the return of income, under the head income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In this fact matrix, the disallowance is upheld and ground of appeal dismissed. 8. Further, the assessee has claimed that no interest was received on certain loans given by it, and at the same time assessee has also not paid interest on borrowings from certain parties. The assessee has claimed that its own funds and interest free loans are more than loans on which interest has been paid. However, no details were furnished either before the lower authorities or before us, during the course of hearing, in support of the aforesaid claim. Further, even though the assessee has claimed that it has not accepted the disallowance of Rs. 5,37,438, however, nothing has been brought on record to prove that said net excess interest paid fit into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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