9911796707
TMI Blog2024 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 by the Assessing Officer, DCIT, Central Circle, Meerut (hereinafter referred to as 'ld. AO'). 2. At the outset, none appeared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of this appeal on hearing the learned DR and based on materials available on record. 3. The ground No. 1 raised by the assessee is challenging the confirmation of disallowance of interest expenditure of Rs 1,50,045/-. 4. We have heard the learned DR and perused the materials available on record. The assessee is an individual deriving income from salary, interest and income from profession. The assessee disclosed interest income of Rs. 29,34,126/- and against which claimed deduction towards interest expenditure restricted to Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds interest. 6. From the facts narrated above, it is not in dispute that the borrowed funds have been utilized by the assessee for advancing loans to certain parties from whom interest income has been indeed earned by the assessee. Hence, one-to-one nexus has been proved beyond doubt. Accordingly, the interest expenditure paid by the assessee on the unsecured loans becomes an allowable expenditure for the purpose of earning interest income in terms of section 57(iii) of the Act. Accordingly, we direct the Learned AO to grant deduction on account of interest paid and ground no. 1 raised by the assessee is hereby allowed. 7. The ground no. 2 raised by the assessee is challenging the confirmation of addition of Rs 36 lakhs made on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ledger account, bank statement of the lender in respect of Seema Sirohi. The learned CITA examined the same. The learned CITA confronted the assessee as to why the ITR of Seema Sirohi was not filed by the learned AR. In response to the same, the assessee submitted that Seema Sirohi was not falling within the tax bracket and hence she was not obliged to file her income tax return. The confirmation of loan given by Ms. Seema Sirohi to the assessee together with her source of making payment to the assessee was reproduced in page 20 of the order of learned CITA. The learned CITA again forwarded this confirmation to the learned AO via email dated 06.02.2024 seeking his comments. A remainder was also sent on 14.02.2024 by email. But no reply was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of Rs. 36 lakhs (5350000-1750000). Aggrieved, the assessee is in appeal before us. 10. It is pertinent to note that against the reliefs granted by the learned CITA to the extent of Rs 17.50 lakhs in respect of loans received from three parties, the revenue is not in appeal before us. 11. First of all, we would like to state that in respect of loan received from Mr Piyush Kumar, the loan of Rs 20 lakhs received on 7-5-2014 was repaid on 13-8-2014 and thereafter fresh loan of Rs 5 lakhs was received from the said party. The learned AO in the assessment had added both old as well as the fresh loans. Once the second loan of Rs 5 lakhs is accepted as genuine and found to be satisfactory, there is no case for treating the earlier loan o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit found credited in the books. If such burden is not discharged by the assessee, then the credits found thereon shall be deemed to be the income of the assessee for the year under consideration in terms of section 68 of the Act. Whereas, for invoking the provisions of section 69A of the Act, the revenue had to first prove that assessee is found to be the owner of any money, bullion, jewellery etc. Unless such burden is discharged by the revenue, the onus does not get shifted to the assessee to prove the source of such money and consequentially the deeming fiction cannot be applied. Hence, there is a huge difference between burden and onus of proof in terms of section 68 and 69A of the Act. This being not satisfactorily explained by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
