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TMI Blog2024 (7) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... 024 & CM APPL. 37943/2024 (Interim Relief) 5. The appellant/ assessee assails the order of the Income Tax Appellate Tribunal ["Tribunal"] dated 30 November 2023 and poses the following questions of law for our consideration: "a. That whether the findings recorded order passed by the Tribunal are perverse? b. Whether Tribunal has erred in law in holding that principle of consistency is not applicable? c. Whether Tribunal has erred in holding that business of money lending was an afterthought merely on the ground that no interest income has been earned in this year? d. Whether Tribunal has erred in not allowing the business expenses relating to business of money lending merely on the ground that no interest income has been earned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, New Delhi, while dealing with the disallowance of expenses of Rs. 2,87,80,430/- by the AO, the issue was appreciated in the light of the fact that the money lending business was accepted in AY 2005-06, 2006-07, 2007-08 and 2008-09 where income of interest was shown as business income and, thus, the ld. CIT(A) in AY 2012-13 has interfered into the issue holding that the interest income from money lending of Rs. 1,15,60,000/- should have been taken as business income and, accordingly, allowed the expenditure. 13.3 Now, coming to the present assessment year, at the outset, we would like to reiterate the settled proposition of law that every assessment year is independent and there is no applicability of principles of res judicata, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wholly and exclusively for business purposes and therefore deserves to be allowed. The Assessing Officer did not have any reasons to rely on the last submission of the appellant because the appellant had not shown any income from money lending business and high expenditures have been claimed under heads such as salary, repair and maintenance, vehicle running and maintenance and depreciation etc. totalling to Rs. 43,62,446/-. The Assessing Officer therefore disallowed the expenditure. 6.1.7 The appellant during appeal hearing submitted that it did not earn any interest on money lending in this year because the parties to whom loans were advanced have stopped paying interest and principal amount and the matter is under litigation. Expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese circumstances there is no case for allowing business expenditure of Rs. 43,62,446/- against nothing. The action of the Assessing Officer in disallowing the amount is confirmed. 13.5 Not it comes up that in the present assessment year there is no interest income at all either under the heads, „Income from other sources‟ or „business income‟. The claim of the assessee is that the lending business should be accepted on the basis of consistency. However, the same cannot be accepted as ld. CIT(A) has made a very specific observation on the basis of the financials. There are only two entries which the assessee claims to be money lending business. Now, In regard to one of those the assessee has filed a copy of complai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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