2014 (6) TMI 506

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Rs.15,27,929/- made on account of interest paid to bank u/s 57(iii) of the IT Act." 3. The facts of the case are that the assessee claimed deduction for an amount of Rs.15,27,929/- received from M/s Sachdeva Buildcon Pvt. Ltd. (hereinafter referred to as 'SBPL') under the head 'income from other sources'. The Assessing Officer asked the assessee to justify the deduction of the sum of Rs.15,27,929/- on account of interest paid to banks. It was claimed by the assessee that he has paid the interest to ICICI Bank and ABN Amro Bank. The money borrowed from these two banks has been utilized for giving loans to SBPL. The Assessing Officer was not satisfied with the claim of the assesse because the assessee has not furnished any evidence in su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....So far as legal principle is concerned that wherever borrowed money has been utilized for giving advance for the purpose of earning of interest, interest paid by the assessee on such borrowed money is to be allowed. In view of the above, we set aside the orders of authorities below on this point and restore the matter to the file of the Assessing Officer. We direct the Assessing Officer to verify the utilization of the borrowed money from ICICI Bank as well as ABN Amro Bank and to the extent the borrowed money has been utilized for giving advance to SBPL, the Assessing Officer will allow the deduction for interest paid to ICICI Bank/ABN Amro Bank. Needless to mention that the Assessing Officer will allow adequate opportunity of being heard ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....). 9. We have heard the arguments of both the sides and perused relevant material placed before us. We find that learned CIT(A) has considered the case of each and every creditor in detail which would be evident from his finding from pages 30 to 35 and thereafter, having been satisfied about the source of the amount advanced by the creditor, he deleted the addition. In the case of Chaman Lal, he has recorded the finding that the name of Chaman Lal was mentioned by mistake in the first list of unsecured loan due to typing mistake and before the Assessing Officer, the assessee corrected the mistake and had pointed out that the amount was actually borrowed from Arvind Kumar and in respect of whom the confirmation, bank pass book, income tax....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0,000/- to the assessee which was re deposited by him in his bank account. After considering the facts of the case, perusal of the order of learned CIT(A) and the arguments of both the sides, we find that the learned CIT(A) has examined in detail the facts of the case relating to each and every creditor. He has meticulously examined the source from where the creditor advanced the money to the assessee and had allowed the relief to the assessee only when he was fully satisfied about the creditworthiness of the creditor and exact source from where creditor advanced the money. In view of the above, we do not find any infirmity in the order of learned CIT(A). We, therefore, sustain the same and reject ground No.2 of the Revenue's appeal. 10.....