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TMI Blog2024 (7) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed to have been standing as a loan was ever given as a loan for the purpose of money lending business. In fact, in AY 2012-13, there was an issue of undisclosed income wherein the AO had made an addition on the ground that the assessee had been showing interest income from M/s Sunil Mantri Realty Ltd. on actual basis. M/s Sunil Mantri Realty Ltd. had paid interest and deducted tax which was reflected in 26AS, but, there was lack of reconciliation. We are of the considered view that what ld. AR has relied in regard to the previous or subsequent years about the money lending business of the assessee is not sustainable in the facts discussed above from the perspective of ld. CIT(A) and we do not consider that there is any error in the sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in the business of money lending. While dealing with the aforesaid the Tribunal in paras 13.2 to 13.5 has held as follows: 13.2 However, what is material is the fact that in that year the assessee was found to be earning interest income and that justified the claim of being into money lending business. In AY 2013-14, the ld. CIT(A) has accepted the claim of the assessee only on the finding that in earlier years the Department had accepted the assessee‟s claim of doing business of money lending. In AY 2014-15, the ld. CIT(A)-11, New Delhi, has restricted the disallowance to 5% rather than 15% as made by the AO on the basis of possibility of personal usage. The order of the ld. CIT(A) shows that in that year the assessee had sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich we have allowed in ground no.2. During the year, the assessee has changed the receipts from LIC India from one received in the capacity as a lessee who has created the sublease to an owner who has rented the premises. Thus certainly the expenses of the description mentioned in the assessment order could not be attributed to the income from property as standard deduction u/s 24(a) of the Act stands allowed. 13.4 It appears that during assessment proceedings the assessee claimed that apart from leasing of property business the assessee is also engaged in money lending business. This was considered by the AO to be an afterthought, but, the ld. CIT(A) has gone into the issue in a more detailed manner making the following relevant observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever personal use of vehicle running and maintenance including interest on car loan and depreciation on car cannot be denied. 6.1.8. From verification of the balance sheet of the appellant it appears that there are two entries/ transactions which the appellant has termed as money lending business i.e. advance against property (Birla Power) amounting to Rs. 3,87,50,000/- and advance to Suil Mantri Developer of Rs. 3,21,18,077/- which happened much earlier may be before 10 years and interest have ceased to come against those advances. It further appears that the advances were for purchase of properties. It is not known under what circumstances and for what reasons these amounts have been given as advance for property to the developer. What ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n flats from Sunil Mantri Realty Ltd., for which payments were made, but, as that vendor could not supply the flats, the vendor had given a cheque of Rs.4,10,00,000/- to the assessee to return the sale consideration and that cheque was dishonoured. Thus, the averments in the complaint do not at all indicate that the money claimed to have been standing as a loan was ever given as a loan for the purpose of money lending business. In fact, in AY 2012-13, there was an issue of undisclosed income of Rs. 12 lakhs wherein the AO had made an addition of Rs. 12 lakhs on t he ground that the assessee had been showing interest income from M/s Sunil Mantri Realty Ltd. on actual basis. M/s Sunil Mantri Realty Ltd. had paid interest and deducted tax whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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