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TMI Blog2019 (10) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... unt was disallowed out of interest expenses debited to the profit and loss account. No interference is called for in the well reasoned order of the Ld. CIT(A), because the assessee has not given any detail of unsecured loan which was necessary and other documentary evidence for substantiating the claim before the revenue authorities, especially before the AO and Ld. CIT(A) and before the tribunal. Therefore uphold the order of the Ld. CIT(A) on the issue in dispute and reject the ground raised by the assessee. - ITA No. 7709/DEL/2018 - - - Dated:- 18-10-2019 - Shri H.S. Sidhu, Judicial Member For the Assessee : SH. Rohit Tiwari, Adv. For the Department : MS. Ekta Vishnoi, Sr. DR. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d its return of income at ₹ 8,42,030/- on 19.9.2014. The case of the assessee was selected for scrutiny through CASS. Notice u/s. 143(2) of the Income Tax Act, 1961 (in short Act ) was issued on 28.8.2015 by the ITO, Ward 28(2), New Delhi and the same was duly served upon the asseseee. Subsequently, on receipt of case on transfer the notice u/s. 143(2) of the Act was also issued alongwith notice u/s. 142(1) of the Act. The main issue involved in the scrutiny proceedings in this case is claim of interest expenses debited to the profit and loss account and its allowability under the Income Tax Act. AO asked the assessee about this query and in response to the same the assessee replied that ₹ 1,02,40,000/- was paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of appeal to the Appellate Tribunal (Form No. 36); statement of facts before the Tribunal; grounds of appeal before the Tribunal; appellate order / impugned order passed by CIT(A); assessment order u/s. 143(3) passed by the respondent/ITO; statement of facts before CIT(A); grounds of appeal before CIT(A); details of facts / grounds related to the appeal filed before the CIT(A); application for amendment filed before the CIT(A) alongwith amended statement of facts and grounds of appeal; submission dated 22.8.2016 filed by the AR of the assessee/appellant before the respondent/AO; details of unsecured loans, sundry creditors and security received for the year 2013-14 and 2014-15; complete set of balance sheet pertaining to financial year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16) 241 Taxman 361 (Punjab Haryana)/[2017) 391 ITR 119/(Punjab Haryana)/[2016) 290 CTR 596 (Punjab Haryana) (Copy Enclosed) where Hon'ble Punjab Haryana High Court held that where assessee-firm failed to establish that properties purchased by its partners were put to use by firm, deduction on interest expenditure on borrowed fund could not be allowed in view of proviso to section 36(1 )(iii). 3. CIT v. Cornerstone Exports (P.) Ltd. (238 Taxman 465) (Gujarat) (Copy enclosed) Where Hon'ble Gujarat High Court held that where Assessee borrowed funds at higher rate, action of Assessee to make advances to group companies at a lower rate of interest could not be any business expenditure. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r going through the written submissions filed by both the parties as well as documentary evidences, I am of the view that before the AO assessee has not substantiated the claim while filing any relevant documentary evidences and the AO disallowed the claim of the assessee u/s. 36(1)(iii) of the Act and disallowed the interest amounting to ₹ 12,28,800/- @12% of ₹ 1,02,40,000/- and added the same to the income of the assessee. Ld. CIT(A), after considering the submissions filed by the assessee alongwith documentary evidences has also dismissed the appeal of the assessee and upheld the assessment order by holding that the assessee failed to prove any business purpose of advance given against property and therefore, the amount of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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