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TMI Blog2021 (9) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... rship business. The utilization of the these funds in the business is also shown from the Audited Balance Sheet of the business concerns as well as per personal Balance Sheet which were duly examined by the AO during the course of the assessment proceedings. The funds in question are also from the family members, and are duly accepted deposits. The unsecured loans are also genuine and accepted deposits. The payment of interest is also not disputed only the head of income under which such deduction is to be allowed is being disputed - in relation to the query letter issued by the AO reply was duly submitted to the AO on these issues which were raised and filed the detailed replies to all the query raised - PCIT has failed to specify as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere used for the propose of business. The ld. CIT had erred in observing that he claim of such interest and commission amounting to ₹ 50,36,464/- is apparently not allowable and was erroneously allowed though such fact was duly verified and was allowable. 2. The brief facts of the case are that the assessee had filed return of income for A.Y. 2015-16 declaring total income of ₹ 29,37,250/- on 29.9.2015 which was assessed u/s. 143(3) of the Act vide order dated 23.12.2017 at total income of ₹ 49,99,851/-. 2. The ld. PCIT observed that the assessee had claimed deduction of interest and bank commission of ₹ 50,36,464/- against income from other sources and there was no income under the head income from other sour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid on loans taken from the family members and these funds had been invested in the business carried on as proprietor. Again in letter dated 17.7.2017 submitted by the assessee it was stated that these loans taken had been invested in her business against which the deduction of interest had been claimed. The AO further on the same issue again vide letter dated 14.12.2017 at page 34 in para 3 enquired about the deduction of this amount of interest and bank commission claimed at ₹ 50,38,838/-. In reply to the same vide letter dated 18th December, 2017 is was pointed that deduction of interest is claimed against the business income. It was also pointed that in past also such deduction was allowed and in subsequent years these loans we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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