Appeals Upheld for Disallowed Interest Expenses | ITAT Delhi | AY 2013-14 & 2014-15

The appeals against the disallowance of interest expenses u/s 36(1)(iii) for A.Y. 2013-14 and A.Y. 2014-15 were dismissed in favor of the Assessee. The Co-ordinate Bench of ITAT Delhi upheld the decisions of the Ld. CIT(A) based on previous rulings in the Assessee's own case for earlier assessment years. The tribunal found no distinguishing factors presented by either party and declined to interfere due to the specific facts and circumstances of the case.

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Issues:
Appeals against order of Ld. CIT(A) for A.Y. 2013-14 and A.Y. 2014-15 regarding disallowance u/s 36(1)(iii) on interest expenses.

Analysis:

Issue 1: Disallowance u/s 36(1)(iii) on interest expenses
- The appeals by the Assessee were against the order of Ld. CIT(A) for A.Y. 2013-14 and A.Y. 2014-15 concerning the disallowance u/s 36(1)(iii) on interest expenses on borrowings.
- The only issue in dispute was the disallowances made by the Assessing Officer in the corresponding Assessment Years under section 36(1)(iii) of the Income Tax Act, 1961.
- Both sides agreed during the hearing that the issue in dispute was covered by orders of Coordinate Benches of ITAT Delhi on identical issues in the Assessee's own case for A.Y. 2007-08, 2010-11, and 2012-13.
- The orders dated 21.12.2018 and 08.02.2019 passed by the Co-ordinate Benches of ITAT Delhi were accepted by Revenue, and no appeal was filed under section 260A of the IT Act.
- The Ld. CIT(A) had deleted the disallowances of interest expenses based on earlier orders for A.Y. 2010-11 and A.Y. 2012-13, which were confirmed by the Co-ordinate Benches of ITAT Delhi.
- The Co-ordinate Bench of ITAT Delhi declined to interfere with the decision of Ld. CIT(A) on the issue of disallowance of interest u/s 36(1)(iii) due to specific and peculiar facts and circumstances of the case.
- Neither side presented any facts to distinguish the present appeals from previous cases, leading the tribunal to decide in favor of the Assessee and dismiss the appeals.

In conclusion, the appeals against the disallowance of interest expenses u/s 36(1)(iii) for A.Y. 2013-14 and A.Y. 2014-15 were dismissed in favor of the Assessee based on the decisions of the Co-ordinate Benches of ITAT Delhi in the Assessee's own case for previous assessment years. The tribunal found no grounds to interfere with the orders of Ld. CIT(A) and upheld the decisions based on the specific facts and circumstances of the case.

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