2025 (1) TMI 752

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..... The income of minor child of assessee is clubbed with the assessee u/s. 64(1A). The minor child has earned interest income which was offered to tax. Purportedly, there was some payment of interest by the minor child as well on loans taken. Assessee in computation of income claimed interest expenditure against the interest income of the minor child. AO and CIT(A) disallowed the claim of interest ex .....

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..... irected against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short the CIT(A) ] dated 24.01.2024, for Assessment Year 2021-22. 2. The assessee in appeal has raised multiple grounds, all the ground are in respect of single issue i.e. disallowance of interest expenditure in respect of assessee s minor son. The assessee in her return of income had also .....

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..... taxed the entire interest income and disallowed interest expenditure in full. Aggrieved by the assessment order dated 19.10.2022, the assessee filed appeal before the CIT(A). The First Appellate Authority without appreciating the facts and submissions of the assessee upheld disallowance of interest. Hence, the present appeal. 3.1. The ld. Counsel for the assessee submitted that during assessment .....

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..... sessee and the documents on record. The CIT(A) has given a categoric finding that earning of interest by minor child is unrelated to the loans taken by the appellant and interest paid thereon. He further asserted that no material was placed on record by the assessee to substantiate that the loans taken on which interest was paid is in respect of minor child. 5. We have heard the submissions made b .....

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..... d to conduct proper inquiry regarding alleged loans taken by the minor child. The CIT(A) has also passed the impugned order on the basis of shallow assessment order. Therefore, we deem it appropriate to restore this issue back to the file of AO for fresh adjudication. The AO shall also consider the documents/submissions furnished by the assessee. In denovo assessment proceedings The AO shall grant .....

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