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TMI Blog2017 (9) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 45,95,00,961/- paid as interest on loan availed of from ICICI Bank to repay the old existing loan taken for the purpose of construction/acquisition of the property from M/s. DLF Limited and M/s. DLF Universal Limited, however subject to the verification of the facts by the AO. So, we hereby allow the appeal filed by the assessee by setting aside the impugned order. - ITA No.5654/Del./2014 - - - Dated:- 30-8-2017 - SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The Assessee : Shri R.S. Singhavi Satyajit Goel, CA For The Revenue : Shri Naveen Chandra, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Appellant, M/s. DLF Emporio Limited (hereinafter referred to as the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : assessee company has claimed interest and financial charges amounting to ₹ 48,41,62,322/- which includes ₹ 45,95,00,961/- as interest on loan taken from ICICI Bank. Assessee company was called upon to explain as to why the interest expenses paid to ICICI Bank should not be disallowed. Assessing Officer, following the decision rendered by CIT (A) in assessee s own case for AY 2009-10, disallowed the interest expenses to the tune of ₹ 45,95,00,961/- and made addition thereof to the income of the assessee under the head Income from house property . 3. Assessee carried the matter before the ld. CIT (A) by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om M/s. DLF Limited and M/s. DLF Universal Limited? 7. Undisputedly, as per CBDT Circular No.28 dated 20.08.1969 if the loan taken has been used exclusively to repay the original/old loan for construction/acquisition of the property, interest paid on the second loan would be allowed as deduction under section 24(1)(vi) of the Income-tax Act, 1961 (for short the Act ). 8. Coordinate Bench of the Tribunal while deciding the identical issue in controversy in assessee s own case held as under:- 13. In our opinion, in the instant case also, if the facts are proved to the satisfaction of the Assessing Officer that the interest has been paid on fresh loans taken for repayment of original loan taken for the purpose of acquisiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repayment of old loans from DLF Ltd. and DLF Universal Ltd., is not getting verified. Ascertaining correct facts is essential for deciding an issue in dispute before us. In absence of complete facts before us, we cannot hold that the new loan was used towards repayment of old loan utilized in acquisition/construction of the property. 14. In view of the facts and circumstances of the case, we feel it appropriate to restore the matter to the file of the Ld. CIT-(A), for issuing a fresh notice of enhancement and decide afresh in accordance with law, after verifying the Ledger accounts of the parties to whom loans of ₹ 340 crores have been repaid during the year. The Ld. CIT-(A) may also verify from day-to-day fund flow statement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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