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TMI Blog2024 (1) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) has merely gone by the quantum of addition in the two assessment years and has not commented anything adverse regarding the nexus between the income and the expenditure incurred or for that matter, the remand report submitted by the AO where the claim of the assessee has been accepted. In the result, the addition so made and adjustment so done by the CPC is hereby directed to be deleted. Appeal of the assessee is allowed. - SHRI. SANJAY GARG, JM SHRI. VIKRAM SINGH YADAV, AM For the Assessee: Shri Ajay Jain, C.A For the Revenue: Smt. Amanpreet Kaur, Sr. DR ORDER PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 31/10/2022 pertaining to Assessment Year 2017-18. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 52,55,261/- and net taxable income of Rs. 8,77,677/- shown in the return of income which comes to Rs 43,77,584/- has been brought to tax by the CPC, Bengaluru. 6.1 It was submitted that the said difference has arisen on account of interest expenditure of Rs. 51,49,167/- claimed against the interest income from M/s Jasmer Foods Pvt. Ltd. amounting to Rs. 51,49,167/-. It was submitted that the assessee has taken loan from M/s Aditya Birla Capital which was directly advanced to M/s Jasper Foods Pvt. Ltd. and the quantum of interest income equates the quantum of interest expenditure and therefore the assessee has shown net interest income at NIL. In this regard, our reference was drawn to the written submission filed before the Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest was credited by M/s Jasmer Foods Pvt. Ltd. in the account of Smt. Charanjeet Kaur to compensate her for advancing loan. From the facts given above, it is clear that interest received by Smt. Charanjeet Kaur from M/s Jasmer Foods Pvt. Ltd. was earned on account of amount of loan taken from M/s Aditya Birla Capital which was directly advanced to M/s Jasmer Foods Pvt. Ltd. and hence net interest income of Smt. Charanjeet Kaur was NIL after paying interest to M/s Aditya Birla Capital. In view of above submission your good self is requested to delete the addition made by CPC while processing the return of income. 6.2 It was further submitted that the case of the assessee for A.Y 2018-19 was also taken up for scrutiny for the similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt documents pertaining to these transactions. 4. In this regard, it is to submit that the same issue of deduction from income from other sources was taken up under scrutiny for A.Y. 2018-19 it is noted that the assessment order was passed by the National Faceless Assessment Centre vide order dated 08.03.2021 no adverse inference has been taken by the Assessing Officer. In view of the above facts, it is to submit that the issue may be accordingly decided on merits. 6.4 It was accordingly submitted that the assessee be provided necessary relief by deleting the adjustment so made by the CPC, Bengaluru and upheld by the Ld. CIT(A). 7. Per contra, the Ld. DR has relied on the orders passed by the lower authorities and our reference was drawn to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income. However, she is submitting during the appellate proceedings that the interest expenditure against interest income should be allowed as in scrutiny assessment u/s 143(3) of the Act for AY 2018-19. To examine the similarity of facts for both assessment years, I find that the appellant had declared interest income (Rs. 56,62,765/-) as well as interest expenses (Rs. 54,83,120) in the ITR for AY 2018-19 and therefore, no addition was made in AY 2018-19. However, the appellant had declared lesser interest income in comparison to the interest income appearing in 26AS Statement and no interest expenditure was claimed in the ITR for the present AY 2017-18, Thus, the plea of the appellant that since the same has been accepted in the scru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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