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TMI Blog2021 (3) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... nsecured loans otherwise has not been disputed by the Department. Even the AO has not made any effort to verify the genuineness of the transaction by summoning the concerned parties either who have advanced loan to assessee or the parties have taken loan from the assessee. There is no allegation that the assessee has used the interest bearing funds for some other purposes. Under the circumstances, in our view, the assessee is entitled to set off the interest expenditure against the interest income earned by the assessee and the net of the same has rightly been offered by the assessee for taxation Addition made by the Assessing Officer is ordered to be deleted - Decided in favour of assessee. - ITA No. 1356/ CHD/2019 (Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y from Axis Bank Ltd. Thus, total interest paid by the assessee during the F.Y. 2015-16was ₹ 47,93,935/- (₹ 34,52,984/- plus ₹ 13,40,951/-). However, the Ld. AO made complete disallowance of the interest paid of ₹ 47,93,935/- which was claimed by the assessee as deduction U/s 57(iii) of the Act against interest income of ₹ 51,23,856/-. The Assessing Officer disallowed the interest expenses of ₹ 47,93,935/- for the reason that the assessee failed to prove direct nexus between the interest expenditure and interest income. 3. In first appeal, the ld. CIT(A) confirmed the disallowances so made by the Assessing Officer. The assessee has thus come in appeal before us. 4. We have heard rival contentions a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds. That there is no allegation of the Department that the interest bearing funds have been used by the assessee for some other purposes. 5. The Ld. D/R has relied upon the findings of the lower authorities. 6. We have considered the rival contents. The assessee has demonstrated from the record that the activity of the assessee of taking interest bearing loan and making advances to other parties is continued for the last so many years. The assessee in this activity has earned net positive interest income. In our view in such a case, there is no need to establish one to one nexus between each of the transaction of loan taken and loan advanced by the assessee. There transactions of taking unsecured loans otherwise has not been disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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