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TMI Blog2014 (2) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... r years, as well as in the present assessment year, then there cannot be a question of doubting the genuineness of the loan in this year, only for the purpose of disallowing the interest in this year. Since, no addition has been made on account of unexplained credit of loan in the earlier year under section 68, then no disallowance can be made out of interest in the present year - the assessee has duly deducted TDS on such payment of interest and has been deposited with the Government account, the details of which are already there in the record – thus, disallowance of interest by way of reducing the work–in–progress as on 31st March 2007, cannot be sustained – Decided in favour of Assessee. - ITA No. 1328/Mum./2012 - - - Dated:- 14-2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer required the assessee to furnish the details of loans taken along with the confirmation from the parties from whom the said loan was obtained and interests have been paid. In response, the assessee could not furnish the details of the said parties or the confirmation as required. After giving ample opportunity to the assessee, the Assessing Officer observed that such a payment of interest cannot be allowed. Out of the gross amount of interest at Rs. 94,12,603, the assessee has shown an amount of Rs. 78,41,423 as payable as on 31st March 2007 in the Balance Sheet. The amount shown to have been paid out of interest, is only the TDS amount which have been deducted and paid on behalf of the three parties from whom loan was taken. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of interest on such loans can be made in this year. The learned counsel has also filed petition for additional evidence, wherein yearwise ledger account of the said parties for the assessment year 2006 07 and 2007 08 has been given along with bank statement of the assessee for the assessment year 2006 07 and 2007 08. He submitted that these evidences will go to show that major loans have been received in the earlier years. 5. The learned D.R., on the other hand, submitted that once the assessee has debited any expenditure or has capitalized the onus is upon the assessee to prove the same that it was for the business purpose. The A.O. and the learned CIT(A) have categorically brought out that the assessee could not establish the genuinen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the earlier years, as well as in the present assessment year, then there cannot be a question of doubting the genuineness of the loan in this year, only for the purpose of disallowing the interest in this year. To disallow the interest in this year on loans taken, then, the Assessing Officer ought to have been made addition under section 68 in the earlier year if he had any doubt about the genuineness of the loan. Once no addition has been made on account of unexplained credit of loan in the earlier year under section 68, then no disallowance can be made out of interest in the present year. Moreover, the assessee has duly deducted TDS on such payment of interest and has been deposited with the Government account, the details of which are al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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