TaxTMI 
TaxTMI 
2021 (10) TMI 497
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....as under : 2. Ground relating to order on merits: (a) On the facts and circumstances of the case, the Ld. CIT(A) has erred in disallowance of interest of Rs. 1,46,250/- u/s 36(1)(iii) of the Income Tax Act, 1961 incurred on money borrowed & invested for purchase of office premises. (b) That the appellant seeks fro opportunity of being heard for producing additional evidence to prove that the interest is incurred for business purposes. 3. Brief facts of the case are that the assessee is an individual engaged in the business of false ceiling. The return of income for AY 2012-13 filed on 29.09.2012 declaring total income at Rs. 20,29,219/-. The case was selected for scrutiny under CASS and serving notices u/s 143(2) and 142(1) duly serv....
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....of both the lower authorities. 7. We have heard the rival contentions and perused the material on record. The assessee's sole grievance is against the disallowance of interest expenditure of Rs. 1,46,250/- made by the Assessing Officer u/s 36(1)(iii) of the Act and confirmed by the Ld. CIT(A). 8. We observe that in the audited profit and loss account interest expenditure of Rs. 1,46,785/- has been claimed for the loan taken for purchase of Marol Office. Assessee's brother Mr. Ashfaque Ahmed Khan is co-owner of this property. Assessee has claimed that he has taken loan from his brother and paid interest thereon and since the property has been purchased for business purposes, the same deserves to be allowed as a business expenditure. 9. We....
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....ducted tax at source of Rs. 14,679/- u/s 194A of the Act on the interest expenditure of Rs. 1,46,785/- and the name of the deductee is Mr. Ashfaque Ahmed Khan. This fact is verifiable from page 49 and 50 of the paper book. The details of the deductee and its PAN No. is reflected therein. 11. We also find that in the AIR i.e. individual transaction statement issued by the Department which relates to the details of transactions for purchases of immovable property, all the details of the property in question before us along with detail of person who purchased the property are mentioned therein. It clearly shows that the property of Andheri (East) referred above was purchased by two persons i.e. assessee and his brother. The property being com....