2018 (6) TMI 31

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....x Act, 1961 (hereinafter referred to as "the Act") dated 28/01/2016 relevant to Assessment Year (AY) 2013-14. 2. The grounds raised by the assessee per its appeal are as under: "1. Your Appellant being aggrieved by the Learned Commissioner of Income Tax (Appeals)-6, Ahmedabad presents this appeal against the same on the following amongst other grounds. 2. The order passed by the Learned Commissioner of Income Tax (Appeals)-6 is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 3. The Commissioner of Income Tax (Appeals) - 6 has grossly erred in confirming addition of Rs. 2,56,287/- to the Interest Income in Income From Other Sources. 4. Your Appel....

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....m such deduction without filing the revised return of income. Thus, the AO disallowed the interest expenses of Rs. 2,20,202/- and depreciation allowance of Rs. 36,085/- and added to the total income of the assessee. 6. Aggrieved, assessee preferred an appeal before the Ld. CIT(A). The assessee before the Ld. CIT(A) claimed that no additional deduction was claimed by him during the assessment proceedings. The assessee has just changed head of income from business and profession to income from other sources. All the deductions claimed against interest income were also claimed when interest income was declared under the head business and profession. Therefore, the finding of the AO that the assessee has claimed additional deduction without ....

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....is only allowed. Since the interest expenditure on overdraft does not fall into this category therefore the AO is justified in disallowing the same. 7.1 Beside this the appellant has also claimed depreciation of Rs. 36,085/- against interest, income however the same is also not allowable in view of the provisions of section 57(3) of the Act hence the AO is justified in disallowing the same. The ground of appeal is dismissed." Being aggrieved by the order of the Ld. CIT(A) assessee is in second appeal before us. The assessee in his return submission has submitted as under: Arguments of the Appellant: It is submitted that all the Fixed Deposits with the Banks are out of Capital and Interest free loans-As per Balance Sheet at....

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....overdraft limits against the fixed deposits and used the funds whenever needed and redeposited the extra funds in such overdraft account and earned the maximum net interest [Interest on FD less Interest paid on overdraft]. It is submitted that the earning of interest from fixed deposit and paying of interest on overdraft are bonded to each other and considered as payment of interest to earn interest income only and no part of the payment be disallowed for payment of interest on overdraft against fixed deposits. Prayer of the Appellant: The Appellant preys to allow interest payment of Rs. 2,20,202/- being paid on overdraft against fixed deposits. The Appellant withdraws the ground of Rs. 36,085/- being depreciation and other expe....