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TMI Blog2021 (11) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the lender nor brought any relevant material on record to prove that the unsecured loan was not genuine. Therefore, we are not inclined with the decision of ld. CIT(A). Accordingly, the appeal of the assessee on this ground is allowed. Disallowance on interest u/s. 36(1)(iii) - AO has compared the payment of interest @ 12%/15% on the unsecured loan obtained by the assessee with the interest amount received by the assessee @ 8% on FDR made with the HDFC bank - HELD THAT:- Earning of interest on surplus fund maintained in FDR cannot be compared with the unsecured loan obtained by the assessee because both are of different nature as the interest on fixed deposit is specified by the bank in the form of automatic switched off fixed depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) of the Act was passed on 29th Feb, 2016 assessing the total income at ₹ 16,94,100/-. Subsequently, ld. Pr. CIT has passed order u/s. 263 of the Act on 21st March, 2018 and set aside the assessment order of the Assessing Officer to be framed de-novo. Assessment order u/s. 143(3) r.w.s. 263 of the act was finalized on 21st December, 2018. The remaining facts pertaining to the issue contested in this appeal are discussed while adjudicating the grounds of appeal of the assessee as follows:- Ground No. 1 (Addition of ₹ 52 lacs on account of unsecured loan taken from Shri Deelip L. Patel u/s. 68 of the Act) 4. During the course of assessment u/s. 143(3) r.w.s. 263 of the act, the Assessing Officer stated that assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copies of bank account, loan confirmation letter in support of genuineness of the transaction. However, the lower authorities have unreasonably made the addition without controverting the supporting documents and evidences furnished by the assessee. In this regard, the ld. counsel has referred page no. 55 of the paper book comprising copy of bank statement of the assessee showing loan obtained from Shri Dilip L. Patel by cheque on 16th May, 2012 and 21st May, 2012. He also referred page no. 56-57 of the copy of bank statement and page no. 69 to 70 of the paper book comprising copies of bank statement showing transaction of loan obtained and repayment of loan made by the assessee. Then, he referred the various pages of paper book showing co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 15% p.a. The above cheque are reflected in bank statement of Dilip L Patel as well as in bank statement of appellant.(EXHIBIT B and C above) Appellant repaid the amount of unsecured loan of ₹ 52,00,000/- alongwith interest Amount Cheque Number Bank Date ₹ 25,00,000/- 002327 HDFC Bank 09/10/2012 ₹ 27,00,000/- 002328 HDFC Bank 11/10/2012 The Appellant has paid interest of ₹ 1 ,28,638/- (Net of TDS) to Dilip Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k statement of the lender and the assessee demonstrating that transaction of loan were routed through bank account and same were repaid during the year under consideration. The Assessing Officer has neither made any investigation and verification from the lender nor brought any relevant material on record to prove that the unsecured loan was not genuine. Therefore, we are not inclined with the decision of ld. CIT(A). Accordingly, the appeal of the assessee on this ground is allowed. Ground No. 2 (Addition of ₹ 4,02,448/- on account of disallowance on interest u/s. 36(1)(iii) of the I.T.) 8. During the course of assessment, the Assessing Officer noticed that assessee has paid interest @ 12%/15% on the unsecured loan obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t account did not fetch any interest. On the other hand, the definite amount of interest paid on unsecured loan used to be on higher side compared to the interest charged on secured loan, therefore, we do not find any justification in the decision of ld. CIT(A) in sustaining the disallowance of interest payment made by the Assessing Officer. Therefore, this ground of appeal of the assessee is also allowed. 10. In the result, the appeal of the assessee is allowed. ITA No. 862/Ahd/2018 A.Y. 2013-14 11. This appeal is directed against the order of ld. CIT(A) made u/s. 263 of the act for setting aside the order passed by the Assessing Officer on 29th Feb, 2016. Since the assessee has not pressed this appeal, therefore, the same sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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