9911796707
TMI Blog2014 (2) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of interest of Rs. 94,12,603 on the ground that loan confirmatory letters were not furnished. 1.2 Not appreciating the fact that loans were taken in A.Y. 2006-07 and not in A.Y. 2007-08. 1.3 Not considering the fact that during course of the assessment proceedings Xerox copy of TDS certificates issued to various parties from whom loans were taken were furnished to the Assessing Officer." 2 The assessee is engaged in the business of construction and developer of projects. During the year, the assessee had shown one project at 41, Pali Hill, Bandra. The Assessing Officer noted that the opening work-in-progress (WIP) as on 1st April 2006 has been shown at Rs. 26,18,57,221 and closing WIP as on 31st March 2007, has been shown at Rs. 29,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d copy of bank pass book wherein the loan received were duly shown along with the expenditure incurred for the purpose of business. Once the loan has been taken for the business purpose, the interest has to be allowed. The learned Commissioner (Appeals) held that the assessee failed to furnish the loan confirmations and also to clarify for what purpose the loans were taken. No nexus between the loan taken and the purpose of the business have been established. Thus, he confirmed the disallowance of the interest from the work-in-progress. 4. The learned Counsel for the assessee submitted that most of the loans were taken in the assessment year 2006-07, for the purpose of the business, which have been duly reflected in the Balance Sheet. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alized in the books. The Revenue's case is that the assessee could not prove the genuineness of the loan and, accordingly, the interest has been disallowed and had been deducted from work-in-progress. The assessee's contention is that majority of these loans taken from the three parties on which the interest has been disallowed, has been taken in the earlier years, hence, no disallowance is called for in this year. The assessee has also deducted TDS on such interest payable and has also deposited the same. We agree with the contention of the learned Counsel that once the loan has been received in the earlier assessment year which are duly reflected in the Balance Sheet filed along with the return of income and the same has not been disturbe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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