2023 (4) TMI 816

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....inafter referred to as the 'Ld. AO') u/s 143(3) of the Income Tax Act (hereinafter referred to as 'the Act') on 23/02/2016, 30/12/2016 and 07/12/2017 for the Assessment Years 2013-14, 2014-15 and 2015-16 respectively. 2. The facts of the case are identical in all the issues and grounds raised thereon are also identical. Hence, these appeals are taken up together and disposed of by this common order for the sake of convenience. 3. Let us take up the appeal of the assessee for AY 2013-14 first. The assessee has raised the following grounds of appeal: "On the facts and in the circumstances of the case the learned CIT(A) has erred in confirming interest of Rs.27,18,524/- claimed as expenditure against the interest paid on loan taken from IC....

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....e claim of deduction of interest payment only to the extent of interest income u/s 57(iii) of the Act. There is no dispute that assessee is carrying on the business of manufacturing of corrugated boxes under the name and style of M/s A.K. Industries (proprietory concern) at D-233, Sector-63, Noida. This premises was owned by the assessee. There is no dispute that during the year under consideration, the assessee was not well and could not concentrate on its business. Accordingly, he had let out the front portion in which he was running business to the tenant and shifted his business to back portion of the same premises i.e., in the shed which was also in the possession of the assessee. The assessee duly submitted the rent agreement entered ....

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.... by the ld. CIT(A). 6. As stated earlier, it is not in dispute that the borrowing made from ICICI Home Finance Ltd was meant to be utilized for construction of the additional floor in the property already owned by the assessee. It is not in dispute that the assessee could not obtain the requisite permission from the competent authority for proceeding with the additional floor construction. Since, the loan amounts were lying idle with the assessee, the assessee thought it fit to use the said loan funds by making investment in fixed deposits with ICICI Bank and State Bank of Patiala. Hence, it is crystal clear that loan funds received by the assessee were directly utilized for making investment in fixed deposits. Admittedly, the interest inc....

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....is regard vide letter dated 12/07/2016 is enclosed at page 32 of the Paper Book. The lease agreement entered with the tenant also categorically proved that existing vacant storage space (shed) is only for the use of the Lessor and Lessee is not allowed to use it for any purpose. The rental income derived from the front portion of the property were offered to tax under the head 'income from house property'. On perusal of the profit and loss account of the assessee, we find that there is no dispute that the business expenditure carried on by the assessee in the form of stock damage, professional charges, accountancy charges, salaries, printing and stationery, repair and maintenance etc. are to be incurred even if the business during the year ....