consistency in income tax assessments, Income Tax

[satbir singhwahi]

Sir

If interest expences are allowed in past assessments years u/s 143(3), whether consistency in assessments need to maintained.Pls guide any case laws.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Your query is not to the point. Please furnish your correct query.

[satbir singhwahi]

Sir

During assessment u/s 143(3) , interest paid on loans taken was allowed in Assessment year 2008-09 to 2012-13.Now in assessment year 2013-14 the A.O. disallowed 1/10th of interest expence. The matter is now in appeal. The loan was taken in 2008-09 and deployed in business.So consistency in assessment to be maintained if facts are same. Any case law to help.

[MARIAPPAN GOVINDARAJAN]

What is the reason given by the department in disallowing the interest?

[satbir singhwahi]

Department has done adhoc diallowance of 1/10 th of interest claimed . Wrongly alleged that funds were not fully utilised for business purpose.

[MARIAPPAN GOVINDARAJAN]

Now it is obligation on you to prove the allegation of the Department.

[satbir singhwahi]

Sir

That i will prove. But want some case laws to substantiate to follow past orders if facts are same with previous years.

[MARIAPPAN GOVINDARAJAN]

If you give the facts of your case, then it can be possible to trace out the similar case laws.

[satbir singhwahi]

Sir

The fact of case 2013-14 is A.O. has disallowed 1/10 interest claimed , being not fully utilised for business. Wheras loan taken in 2008-09 and fully utilised for business purpose. No new loan taken. But A.O. has allowed full interest in 2008-09 to 2012-13.

[MARIAPPAN GOVINDARAJAN]

OK I will try for you.

[satbir singhwahi]

Thanks Sir