2023 (7) TMI 567

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..... unsel For the Respondent Through: None RAJIV SHAKDHER, J. (ORAL): CM Appl. 34152/2023 [Application filed by the appellant revenue seeking condonation of delay of 23 days in filing the appeal] CM Appl. 34153/2023 [Application filed by the appellant revenue seeking condonation of delay of 90 days in re-filing the appeal] 1. These applications have been filed on behalf of the appellant/revenue .....

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..... hat the respondent/assessee had not been able to demonstrate "commercial expediency". 7.1 Accordingly, the AO disallowed interest expenses amounting to Rs. 5,16,16,215/- in proportion to the non-interest bearing advances extended to each of the partners. 8. The respondent/assessee, being aggrieved by the order, preferred an appeal with the Commissioner of Income Tax (Appeals) [in short, "CIT(A)" .....

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..... terest paid by the respondent/assessee to the bank was allowed as deductible expenditure. 11.3 It is only in AYs 2012-13, 2013-14 and 2014-15, that the concerned officer veered away from this and disallowed the interest expenditure. As noticed above, in the instant AY as well, i.e., AY 2015-16, the AO has chosen to disallow the interest expenditure. 12. On being queried, Mr Kumar says that appea .....

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..... ears are AY 2012-13, 2013-14, 2014-15 and 2015-16. The CIT(A), however, made a course-correction by reversing the view of the AO even for those years. The Tribunal has sustained the view taken by CIT(A) in AY 2015-16, which is the AY under consideration in the instant appeal lodged before us. 14. Given this backdrop, the moot point which arises for consideration is, two-fold. 15.1 First, does th .....

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..... t accept that the interest expenditure is revenue neutral. In case this was to be disallowed in the hands of respondent/assessee i.e., the partnership firm, it would have to be allowed in the hands of the partners. 18. Thus, for the foregoing reasons, we are not inclined to interfere with the decision of the Tribunal. 19. The appeal is, accordingly, closed.
Case laws, Decisions, Judgements, .....

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