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TMI Blog2020 (11) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... investment on which it has earned interest income. Therefore, the assessee should get deduction of interest expenditure to the extent of interest income earned - It is relevant to observe, in assessee's own case in AY 2017-18, the AO himself has allowed claim of deduction of interest expenditure to the extent of interest income earned during that year. In view of the aforesaid, the ground is allowed as indicated above. Thus we direct the ld. AO to restrict the disallowance of interest to the extent being the interest income received on term deposits. Accordingly, the ground No.1 raised by the assessee is allowed for statistical purposes. Charging of interest u/s.234A, 234B 234C - Interest for all the assessment years which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up together and disposed off by this common order for the sake of convenience. With the consent of both the parties, the appeal of the assessee for A.Y.2013-14 has been taken as the lead case and the decision rendered thereon would apply with equal force for A.Yrs.2014-15 and 2015-16 also except with variance in figures. 2. The identical issue to be decided in this appeal is as to whether the assessee was eligible for deduction of interest u/s.57 of the Act to the extent of interest income of deposits in the sum of ₹ 4,43,743/- under the head income from other sources in the facts and circumstances of the case. 3. We have heard rival submissions and perused the materials available on record. The undisputed facts are that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this Tribunal had restricted allowability of interest expenditure u/s.57 of the Act to the extent of interest income. The relevant portion of the said order is reproduced herein for the sake of convenience:- 9. Considered the rival submission and material placed on record, we notice from the records that the assessee has earned interest income from the deposits in bank. These deposits are out of the balance of liquidating certain investments. Since the assessee is under the direct control of Hon'ble Spl. Court and all the issues are pending before the Hon'ble Spl. Court. The plea of the assessee is that there is oral contract between the parties to pay 12% per annum and whatever the interest income earned by the assessee are out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for all the assessment years which was charged without giving credit for tax deducted at source. 5.1. We have heard the rival submissions and perused the materials available on record. We find that this issue was also the subject matter of adjudication by this Tribunal in the case of DCIT vs. Aatur Holdings Pvt. Ltd., in ITA No.6763/Mum/2018 for A.Y.2014-15 and ITA No.6764/Mum/2018 for A.Y. 2015-16 dated 13/03/2020 wherein it was observed as under:- 12. Ground No. 2 3 relates to levy of collection of interest tinder section 234A. 234B 234C and charging of interest excluding the income which is subject to TDS. We have noted that on similar pound of appeal in assessee's group case in ITA No. 5799/ Mum/2015 in case of Sudhir S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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