TaxTMI 
TaxTMI 
2022 (6) TMI 879
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....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. He failed to appreciate that the appellant had invested in Embassy One Developers Private ....
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....s 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 claimed total interest expenditure, as below: Interest paid on debentures 24,65,753 Interest from Axis Bank 69,95,264 Processing char....
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....llowed 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 impugned expenditure which gives sufficient cause to disallow the claim of the business loss. Against this, the assessee is in appeal before us. 8. We have heard both the parties and perused th....