TaxTMI 
TaxTMI 
2024 (1) TMI 1074
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.... ORDER PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.2164/Del/2018 for AY 2007-08, arises out of the order of the Commissioner of Income Tax (Appeals), Karnal [hereinafter referred to as 'ld. CIT(A)', in short] in Appeal No. IT/06/Set Aside/KNL/2011-12 dated 23.01.2018 and in ITA No. 2165/Del/2018 dated 16.11.2016 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 ....
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....by the ld CIT(A) without considering the remand report by the ld AO, the assessee preferred a rectification petition u/s 154 of the Act before the ld CIT(A). In the rectification proceedings, the ld CIT(A) did not agree to the contentions of the assessee and dismissed the same. Hence, the assessee after the disposal of the rectification petition by the ld CIT(A), had preferred appeal against the o....
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....sue to be decided in these appeals is as to whether the ld CIT(A) was justified in confirming the disallowance of interest on the ground that the borrowed funds were utilized for non-business purposes. 5. We have heard the rival submissions and perused the material available on record. The assessee is an individual dealing in purchase and sale of securities and purchase and sale of properties. Du....
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....und that the borrowed funds were utilized for non business purpose in terms of section 36(1)(iii) of the Act. The assessee had furnished the complete details of borrowed funds together with its utilization thereon before the ld CIT(A) and pleaded that the interest paid on borrowed funds would be eligible for deduction. The ld CIT(A) sought for a remand report from the ld AO. The ld AO indeed submi....