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TMI Blog2024 (1) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire dispute on the ground that the borrowed funds were utilized for non business purpose in terms of section 36(1)(iii) HELD THAT:- The assessee was pursuing an alternative remedy available with him legally before the ld. CIT(A) by waiting for disposal of rectification application. - The reasons adduced by the assessee for the delayed filing of appeal is sufficient cause - Delay condoned. The assessee had furnished the complete details of borrowed funds together with its utilization thereon before the ld CIT(A) and pleaded that the interest paid on borrowed funds would be eligible for deduction. CIT(A) sought for a remand report from the ld AO who indeed submitted the remand report, clearly giving the details of utilization of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in ITA No. 2165/Del/2018 filed by the assessee, there is delay of 418 days in preferring appeal by the assessee before us. In this regard, the assessee has filed condonation petition together with sworn in affidavit. The reasons stated by the assessee in the condonation petition is that the order of the ld CIT(A) was received by him on 05.12.2016 and the said order was passed without considering the observations made by the ld AO in the remand report. If the said remand report is considered, the assessee would be entitled for substantial relief. Since, the appellate order has been passed by the ld CIT(A) without considering the remand report by the ld AO, the assessee preferred a rectification petition u/s 154 of the Act before the ld CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has made purchase of properties of Rs. 3,48,06,726/- which is reflected in the trading account of the assessee. These properties were purchased in the course of business partially out of own funds and partially out of borrowed funds. The borrowed funds thereon are raised specifically for the purpose of purchasing the properties. The ld AO observed that the assessee had claimed deduction of Rs. 42,21,167/- on account of interest expenditure. The ld AO proceeded to disallow the entire interest u/s 14A of the Act on the ground that borrowed funds were utilized for making investments in securities and shares which had yielded exempt income to the assessee and completed the assessment. The ld CIT(A) however, addressed the entire dispute on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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