2018 (9) TMI 100

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..... Hon'ble Supreme Court in the case of ACG Associated Capsules [P] Ltd [2012 (2) TMI 101 - SUPREME COURT OF INDIA] has categorically held that netting off of interest is permissible. Interest earned from the bank and interest paid to the bank has to be netted off and only surplus interest becomes income of the assessee. Assuming, yet not accepting that interest earned by the assessee has to be .....

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..... 2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the addition of ₹ 22,40,424/- disallowing set off of interest income. 3. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings , the Assessing Officer noticed that the assessee has set off its interest income of ₹ 22,40,424/- earned from .....

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..... ld not be allowed to be set off against interest payment. 5. Per contra, the ld. DR strongly supported the findings of the AO. 6. We have given thoughtful consideration to the orders of the authorities below. There is no dispute that the Assessing Officer has himself accepted that the Fixed Deposits made in ING Vysya Bank were out of the surplus funds of bank loans. 7. The Hon'ble Sup .....

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