Tribunal Rules in Favor of Assessee: Disallows Interest Expense, Deletes Unexplained Cash Additions, Adjusts Capital Gains Costs.

The Income Tax Appellate Tribunal ruled in favor of the assessee on several issues. It found the disallowance of proportionate interest expenses unjustified, as the assessee had sufficient interest-free funds exceeding non-income-generating investments, and the Assessing Officer failed to establish a direct link between borrowed funds and investments. Additions for unexplained cash credits were deleted, with the Tribunal noting the assessee's explanation of cash sources and the AO's failure to verify lenders' creditworthiness. The Tribunal limited the disallowance of improvement costs in capital gains calculations to 10%, recognizing genuine expenses while addressing Revenue's concerns. Additionally, a bogus gift receipt addition was deleted based on adequate evidence provided by the assessee. .....

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