TaxTMI 
TaxTMI 
2018 (8) TMI 1627
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....spect of loan taken from M/s, India Bulls Financial Services Ltd.?" 11. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A} erred in holding that the loans received from M/s India Bulls Financial Services Ltd had been utilized for reimbursement of loans already taken for purchase of property at Pune on which the assessee had shown rental income) without appreciating that neither a fund flow statement nor any specific evidence was furnished by the assessee- company to substantiate direct utilization of loans taken from M/s India Bulls Financial Services Ltd towards repayment of earlier loans?" III. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT[A) erred in holding that loans received in AY 2GG8-Q9 from M/s India. Bulls Financial Services Ltd., had been utilized for reimbursement of loans already taken for purchase of property at Pune without appreciating that unsecured loans to the tune of RS, 4,42 crores received from other companies were used in that year for purchase of shares and even in respect of squared off loans totaling to Rs. 1.09 crores taken from directors/share-holders, no corroborative evidence wa....
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....) before Income Tax Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court were specified. 2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below. 3. Henceforth, appeals/ SLHs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder; S. No. Appeals/ SLPs in Income-tax matters Monetary Limit (Rs 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. For this purpose, 'tax effect' means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended....
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....visions been reduced by the amount of the disputed issues under general provisions; C = the total income assessed as per the provisions contained in section 115J B or section 115JC; D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115 JB was reduced by the amount of disputed issues under the said provisions: However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D. 7. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above, the Pr. Commissioner of Income-tax/ Commissioner of Income Tax shall specifically record that "even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this Circular". Further, in such cases, there will be no presumption that the Income-tax Department has acquiesced i....
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....en accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts. 11. The monetary limits specified in para 3 above shall not apply to writ matters and Direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute and rules. Further, in cases where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A/12AA of the IT Act, 1961 etc., filing of appeal shall not be governed by the limits specified in para 3 above and decision to file appeals in such cases may be taken on merits of a particular case. 12. It is clarified that that monetary limit of Rs. 2O lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of the Act. Cross objections below this monetary limit, already filed should be pursued for dismissal as withdrawn/ not pressed. Filing of cross objections below the monetary limit may not be considered henceforth. Similarly, references to High Courts and SLPs/ appeals before Supreme Coon below the monetary limit of-Rs. 50 l....
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....pital and that the purpose of use of funds under loan ''shall11 not be changed in any manner during the tenure of the loan or that such change in purpose "shall'1 take place only with the prior written permission of M.s, India Bulls Financial Services Ltd.?, iv. "Whether on the facts and in The circumstances of the case and in law* the Ld. ClT(A) erred in not appreciating that in the details furnished by the assesses itself during proceedings for AY 2008-09 in the form of a statement explaining the loans raised and utilization of such loans for acquisition of assets, it was clearly stated that the loan from M/s. India Bulls had been utilized for purchase of shares in two private limited companies which fact was mentioned in the assessment order?'1 v. ''Whether on the facts and in the circumstances of the case and in law, the Ld. ClT(A) erred in not appreciating that in the instant case, in the absence of specific evidence to substantiate direct utilization of loans taken from M/s. India Bulls Financial Services Ltd as having been utilized lot repayment of earlier loans which were obtained for purchase of the property, the claim of deduction u/s 24(b) mad....
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....ly claim u/s 14A of the Act and assessed the expenditure to earn the exempt income to the tune of Rs. 3,28,374/-, therefore, the revenue has filed the appeal in ITA. No.7125/M/2013 before us. ISSUE. NO. 1:- 12. Under this issue the revenue has challenged the allowance of the claim of the assessee towards interest to the tune of Rs. 31,84,764/- u/s 24(b) of the Act to the tune of Rs. 31,84,764/- u/s 24(b) of the Act. Before going further, we deemed it necessary to advert the finding of the CIT(A) on record.: - "1.3 From the perusal of the facts of the case, it is an undisputed fact that the assesses has purchased properly at Pune for a consideration of Rs,2,20,33,500/- in 2005. Secondly, A is also undisputed that as per balance-sheet of AV. 2006-07, the assessee was having only Rs. 29,94, 199/-. share capital, reserves & surplus. Thus, the assessee has taken unsecured loans amounting to Rs. 2,62,29,088/- which was utilizer for purchase of properly at pune it is also an undisputed issue that the assessee has received loan from M/'s. Indias Bulls Financial Services Pvt. Ltd. in the year 2008 amounting to Rs. 2,04,91,51/-. The assessee has claimed that this loan received from ....
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....Services Ltd. clearly proves that there is a direct nexus (hat this [can was utilized for purchase of this property. Once it is established that this loan was utilized or purchase of property, therefore, the deduction u/s 24 of the I.T. ACT is allowable to the assessee. In view of these Facts & circumstances, it is held that there is a direct nexus that the assessee has. received loan from M/s. India Burls Financial Services Ltd. which was utilized for reimbursement of unsecured loans for purchase of Rune property, therefore, the disallowance made by the A.O, is not sustainable, hence deleted Ground of appeal is allowed." 13. On appraisal of the above said finding, we noticed that AO has declined the claim of the assessee on account of this fact that no purpose has been written in the application while seeking the loan from M/s. India Bulls Financial Service Ltd. however, the AO nowhere examined the other relevant documents. The CIT(A) has gone through the each and other aspects of the case and also gone through the loan agreement which speaks about the purpose in which the loan was taken. The loan was found to be taken for purchase of property. Therefore, the deduction u/s 24 of ....