TaxTMI 
TaxTMI 
2020 (10) TMI 22
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....143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/06/2016 by the ld. Dy. Commissioner of Income Tax, Central Circle 4(3), Central Range-4, Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal of the assessee is as to whether the ld. CIT(A) was justified in confirming the interest disallowance of Rs. 4,13,695/- in the facts and circumstances of the case. 3. We have heard rival submissions and perused the materials available on record. The undisputed facts are that the assessee had shown interest income of Rs. 4,13,695/- on term deposits under the head 'income from other sources'. Against these interest receipts, the assessee had claimed deduction of interest expenditure u/s.....
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.... investments. Since the assessee is under the direct control of Hon'ble Spl. Court and all the issues are pending before the Hon'ble Spl. Court. The plea of the assessee is that there is oral contract between the parties to pay 12% per annum and whatever the interest income earned by the assessee are out of the surplus of the liquidation of certain investment. The investment as well as the fund management are under the supervision of the Hon'ble Spl. Court, assessee has no role to play. From the facts on record, prima facie, it appears that there is a nexus between the borrowed funds on which assessee has paid interest and the investment on which it has earned interest income. Therefore, the assessee should get deduction of inte....
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.... section 234 A. 234B & 234C be recomputed after excluding the income which is subject to TDS. Therefore, considering the decision in ITA No. 5799/Mum/2015, the Assessing Officer is directed to recompute the interest accordingly. In the result, these grounds of appeal are allowed for statistical purpose." 4.2. Respectfully following the said decision, the ground Nos. 2&3 raised by the assessee are allowed for statistical purposes, wherein the ld. AO is directed to recompute the interest in the light of the aforesaid decision. 4.3. In the result, the appeal of the assessee is allowed for statistical purposes. 5. Let us take up the revenue appeal. The only issue involved in the appeal of the revenue is as to whether the ld. CITA) was justif....