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TMI Blog2022 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Ltd. - HELD THAT:- On perusal of the assessment order, we find that the Assessing Officer has not made any extensive enquiry with M/s. Maurya Hotels (Madras) Pvt. Ltd. as to whether it has offered loan to the assessee company for the purpose of construction of building belongs to the assessee or called for any relevant details and verified. The assessment order is very cryptic. Accordingly, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to call for the details and verify as to whether M/s. Maurya Hotels (Madras) Pvt. Ltd. has offered loan to the assessee and decide the issue afresh in accordance with law by affording an opportunity of being heard to the assessee - Appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced has revealed that M/s. Maurya Hotels (Madras) Private Limited is the borrower, M/s. Sundaram Home Finance Ltd. is the lender and the assessee M/s. Capricorn Holding Pvt. Ltd is confirming party. The Assessing Officer has observed that the amount has been borrowed by M/s. Maurya Hotels (Madras) Private Limited and the interest expenditure has to be met by that entity and the assessee company cannot claim any interest expenditure as the assessee was only a confirming party. From the loan agreement, the Assessing Officer noted that the loan was not taken for the construction of house property. Accordingly, the Assessing Officer disallowed the interest expense claim of ₹.59,49,330/- and brought to tax. On appeal, the ld. CIT(A) up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Ltd. The case of the Assessing Officer is that the amount has been borrowed by M/s. Maurya Hotels (Madras) Pvt. Ltd. and the interest expenditure has to be met by that entity and the assessee company cannot claim any interest expenditure. By referring to the paper book page 35, the ld. Counsel has submitted that M/s. Maurya Hotels (Madras) Pvt. Ltd. has confirmed the receipt of the interest on loan as on 31.03.2014. It was further submission that M/s. Maurya Hotels (Madras) Pvt. Ltd. is a substantial share holder of the assessee company and offered loan to the assessee by availing loan from M/s. Sundaram Home Finance Ltd. Therefore, the interest expense incurred by the assessee has to be allowed. We find force in the argument of the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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