2022 (6) TMI 879

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....07.2019. The assessee raised the following grounds of appeal: "1. The Commissioner of Income-tax (Appeals) erred both in law and in the facts of the case in sustaining the following additions:   Rs. Disallowance of business loss 37,32,655 Disallowance of deduction claimed u/s.57(3) 95,73,377   --------------------- Total : 1,33,06,032   --------------------- 2. He erred in holding that the appellant did not commence its business activity. 3. He failed to appreciate that, by providing finances to Concerns carrying on identical business and that, those Concerns had utilized it in its real estate activity confirms the appellant had commenced its business. 4.....

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....rect nexus between debenture issued and loans advances. The above document should go to the root of the matter to prove the nexus between the borrowings and the lending. Hence, it was prayed by the Ld.AR that these additional evidences should be taken for the purpose of fair adjudication of the issue in dispute. 4. The Ld.DR did not raise any strong objection with regard to admission of additional evidence. 5. In our opinion, these above additional evidences are very much required to decide the issue in dispute, accordingly, these additional evidences are admitted for adjudication. 5.1. First, we consider Ground No.5 in this appeal as it relates to the above additional evidence. The facts of the issue are that the assessee has clai....

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....r last year as under:   FY.2014-15 FY.2013-14 Income 36,94,973 (interest income under income from other sources) NIL Expense Less: Expenses disallowed in Statement of total Income 1,33,10,788 95,79,477 87,903 0 Total expenses Claimed 37,37,411 87,903 (Business Loss) (37,32,655) (87,903) Thus, AO disallowed the business loss claimed by the assessee at Rs.37,32,655/- as the business of the assessee was not set up during the assessment year nor the assessee has any source of income came into existence in the assessment year under consideration. Against this, the assessee went in appeal before the CIT(A). The CIT(A) observed that there is no matching income offered to tax against the im....