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TMI Blog2015 (4) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 15 lakhs on 27th March 2008 and 28th March 2008, from three persons and the same have been given to the company on 28th March 2008 and 2nd April 2008. At that time also, a sum of ₹ 12,90,000, which was debited by way of autosweep by the bank and the same has been remitted back at the time of clearance of the cheque. Thus, the contention of the learned counsel before us appears to be factually correct and the findings of the learned Commissioner (Appeals) as noted above, gets vitiated from the facts and material placed on record. Thus, we set aside the impugned order passed by the learned Commissioner (Appeals) and hold that there is a direct nexus between the loan received and the loan given and, therefore, the interest paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the facts and in the circumstances of the case and in law the learned CIT(A) erred in disallowing interest paid ₹ 4,53,210 as having no nexus with the interest income earned. 2. The learned CIT(A) erred in appreciating the facts that the funds borrowed from individual lenders have been advanced to M/s. SSAPL and has earned interest income on funds so borrowed. 3. The learned CIT(A) has erred in not considering the ground of appeal of not allowing profession fees paid ₹ 3,750 without assigning any reasons. 2. Facts in brief:- The Assessee is an individual having income from salary as a director of the company M/s. Sanghvi Shoe Accessories Pvt. Ltd. Besides this, she is also having income from house property a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was given in the following manner:- Interest received from M/s. Sanghavi Shoe Accessories Pvt. Ltd. ₹ 492757 Other interest from Bond, etc. ₹ 82396 Total Interest Income ₹ 575153 Less: Interest, etc. paid to Principal ₹ 900000 J.S. Mehta @ 18% ₹ 161260 ₹ 250000 N.M. Mehta (HUF) @ 18% ₹ 37725 ₹ 250000 J.S. Mehta (HUF) @ 18% ₹ 31931 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the two is correct and, therefore, he has rightly disallowed the interest claimed under section 57(iii). 5. Before us, the learned Counsel for the assessee submitted a copy of the bank statement of the Axis Bank and pointed out the various dates on which the assessee has taken loan from various persons and loan given to company M/s. Sanghvi Shoe Accessories Pvt. Ltd. The relevant details in this regard were furnished as under:- Loan Given to SSAPL Sources of Loan given to SSAPL Date Amount (Rs) Date Amount (Rs) Loan taken from 16.03.2008 11,50,000 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s evident from the fact that the sum of ₹ 8,30,000, was debited on account of autosweep and when the loan was given, the said amount was reflected back in the account. Similarly, at the time of giving the loan of ₹ 12.50 lakhs to the company on 28th March 2008, an amount of ₹ 12.90 lakhs was on account of autosweep which was rebutted back in the account for making the payment. Thus, he submitted that, factually also, the findings of the learned Commissioner (Appeals) cannot be appreciated. 7. The learned Departmental Representative, on the other hand, strongly relied upon the order of the learned Commissioner (Appeals). 8. We have carefully considered the rival contentions and perused the material available on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid to M/s. Sanghvi Shoe Accessories Pvt. Ltd. The learned Commissioner (Appeals) has drawn adverse inference mainly on the ground that as on the date of payment to the company, the assessee was not having sufficient credit balance. However, he has not taken into cognizance the fact that autosweep amount of ₹ 8.30 lakhs has been remitted back at the time of clearing the said amount of cheque of ₹ 11.50 lakhs. Thus, there is no discrepancy with regard to the availability of balance available with the assessee in her bank account at the time of giving of the loan. From the proximity of the dates, it can be seen that there is a direct nexus between the loan taken and loan given. Similarly, the assessee has received sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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