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TMI Blog2025 (5) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... en the following grounds of appeal:- "1. On facts and circumstances of the case and in law, the order passed by the Ld. CIT(A) is bad in law, illegal besides being in violation of principle of natural justice & equity as passed without considering the material already placed on record, as such it is liable to be quashed and set aside. 2. On facts and circumstances of the case and in law, the Ld. CIT(A) has grossly erred in sustaining addition of Rs. 69,36,456/- on account of interest expenses so added in the hands of the appellant by the A.O., when there is no justification in sustaining the same. LEAVE CRAVED The appellant craves leave to add, alter, amend and/or withdraw any of the grounds or ground of appeal either before or at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd he submitted that only the balance amount of Rs. 10,11,097/- should have been claimed by the assessee as deduction under Section 57 of the Act. Accordingly, the assessee submitted revised computation of income before the Assessing Officer. However, the Assessing Officer observed that the assessee's books of accounts had been duly audited and the assessee erred in filing revised computation of income without filing a revised Tax Audit Report or without filing a revised return of income. Further, the Assessing Officer was of the view that the assessee failed to prove the nexus between the funds borrowed and funds lent, for the purpose of allowability of claim of deduction under Section 57 of the Act. Accordingly, the Assessing Officer adde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as per ROI Rs. 43,79,040/- Add: Disallowance u/s 57 Rs. 69,36,456/- Rs. 69,36,456/- Total income assessed Rs. 1,13,15,496/- 4. In appeal, Ld. CIT(A) upheld the order of Assessing Officer, with the following observations: "The onus of proving that, certain expenditure has been incurred to earn the income is on the assessee. However, the assessee has failed to discharge the primary onus cast upon him to prove that interest expenditure to the extent of Rs. 69,36,456/- has been expended wholly and exclusively for the purpose of earning the interest income despite being provided an opportunity. In the view of the above discussions from point no.-(i) to (iv), this Appellate authority upholds the addition made by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of such interest payment made to the depositors, wherever the provisions of Section 194 of the Act were attracted. Further, the Counsel for the assessee also submitted that it is a well a settled law that the assessee can revise the computation of income at any stage, and the rightful claim of deduction of interest expenses incurred by the assessee cannot be denied to the assessee. This is more so in light of the fact that the assessee is maintaining two separate books of accounts and is engaged in the business of construction (in the name and style of M/s. Yashvi Construction) and for such purpose, undeniably, the assessee had taken loan on which interest was paid and the same was required to be allowed to the assessee under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest under Section 57 of the Act is that the assessee was not able to prove the nexus between the interest paid on amounts taken and the interest earned by the assessee. It is a well settled law that in case the assessee has made any error in filing the return of income, it would be open for him to revise the same or filed revised computation before Appellate Authorities. A legitimate claim of deduction cannot be denied to the assessee, only on the ground that the same was not claimed in the return of income. In our considered view, in all fairness, in the interest of justice, the matter may be restored to the file of Assessing Officer to verify the genuineness of the claim of the assessee whether the interest was taken for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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