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TMI Blog2018 (7) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... is not even clear, as to the head of income under which ld. Commissioner of Income Tax (Appeals) considered the interest. Though it is stated by the ld. Commissioner of Income Tax (Appeals) that assessee had advanced loans to sister concerns, it is also mentioned that assessee did not file any confirmation of the loan creditors. The disallowance was for interest and not for unconfirmed credits - this issue needs a revisit by the ld. Assessing Officer - decided in favour of statistical purposes. - I.T.A. No. 1671/CHNY/2017 - - - Dated:- 2-7-2018 - SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER For The Appellant : Shri. S. Sridhar, Advocate For The Respondent : Shri. B. Sagadevan, IRS, JCIT ORDER In this appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not furnished by the assessee. As per the ld. Authorised Representative, ld. Commissioner of Income Tax (Appeals) had confirmed such disallowance taking a view that proof for interest on loan borrowed for house construction was a mandatory requirement for allowing a claim u/s.24(b) of the Act. Submission of the ld. Authorised Representative, was that if assessee was given an opportunity, it will be able to substantiate payment of interest against housing loan. 6. Viz-a-viz, disallowance of interest of ₹ 7,52,547/-, submission of the ld. Authorised Representative was that assessee had advanced loans to two concerns called M/s. Saberwal Surgical Company Pvt Ltd and M/s. Jupiter Manufacturing Works. As per the ld. Authorised Repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of ₹ 7,52,547/-, what was held by the ld. Assessing Officer at para 4 is reproduced hereunder:- Assessee's interest receipts as per Form 26AS was more than the interest receipt admitted by the assessee in return of income and hence assessee's A.R was asked to produce the details of interest income received during the year. Assessee's representative in his letter dated nil, replied as under: 'the interest income admitted in the Income Tax return has been reflected in the profit and loss account alongwith other income. The Profit and loss account also reflects the interest payment of ₹ 12,62,633.12 which was utilised for the assessee's income activities which has been taken in to account in the Memo of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the AR's argument that interest disallowance was wrongly made cannot be accepted. On the other hand, the AO had made this disallowance because the interest payments as per the appellant were not reflected in the confirmations of the loan creditors. The AR has not furnished any explanation with regard to that -variation. Secondly, it is also noted from assessment order for AY. 2012-13 in the appellant's own case, a copy of which was produced by the AR, that similar interest disallowance was made after a detailed discussion and that finding made in that year equally holds good for this year though AO did not elaborate on this matter in this years' order. Considering the circumstances in totality, I am of the view that AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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