TaxTMI 
TaxTMI 
2023 (9) TMI 1111
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.... the Ld.CIT(A) has erred in deleting the addition on account of interest income of Rs. 7,56,21,843/- without appreciating the fact that the assessee has not provided the details of rate of interest at which the loans were disbursed with supporting documents. 2. Whether, on the facts and in circumstances of the case and in law, the Ld.CIT(A) is justified in deleting the addition on interest income without taking into account the factual observation of the A.O that no commercial expediency for giving the loan given were submitted by the assessee with relevant documents. 3. Whether, on the facts and in circumstances of the case and in law, the Ld.CIT(A) is justified in deleting the addition on interest income without giving a....
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....HFL @10% which resulted in net interest income of Rs. 14,38,017/- only and, therefore, the major portion of the tax deducted at source is claimed in the return as refund. The Assessing Officer worked out interest income of the assessee by applying the rate of interest @12% for the whole year that came to Rs. 12,08,84,000/- and held that the assessee has suppressed interest income to the tune of Rs. 7,56,21,843/- i.e. Rs. 12,08,84,000/- (-) Rs. 4,52,62,167/-. The assessee submitted before the Assessing Officer that the loan from DHFL was received on multiple dates from October 2017 till the end of the year and that the advances were also accordingly given in tranches to various parties. The assessee submitted the copy of ledger account, bank....
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....g of 12% notional interest for entire year on the loan expended is not correct and hence, the addition of Rs. 7,56,12,843/- made by the AO is hereby deleted." "4.4.4 The appellant's submissions are considered. It is seen from the balance sheet submitted that both Secured and Unsecured loan under Liabilities side and Loans and Advances in Assets side were shown as outstanding including the interest accrued thereon which was already offered for taxation. Hence, considering the same the addition of Rs. 2,64,72,535/- is found to be not in order and hence the same is deleted. The appellant succeeds on this ground." 3. Aggrieved, the revenue is in appeal before the Tribunal. 4. The Ld.DR submitted that the assessee did not prov....
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....ce account includes the interest receivable from the party net of TDS and this fact has been clearly explained to the Assessing Officer which is reproduced in his order of assessment. Accordingly, the Ld.AR submitted that the CIT(A), after considering the details furnished has correctly deleted the addition made. 6. We heard the parties and perused the materials on record. During the year under consideration, the assessee has taken a loan of Rs. 105.92 lakhs from DHFL at an interest rate of 10% p.a. The date of receipt of loan is as per the details given below:- Date of receipt of Loan amount Amount Received 06.10.2017 Rs. 25,00,00,000 11.10.2017 Rs. 49,00,00,000 21.11.2017 Rs. 15,28,00,000 02.02.2018 Rs. 9,....
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....lent the loan after October, 2017 on various dates and that interest is calculated considering the number of days for which the loan was advanced. Given this, we are unable to understand or appreciate why despite reproducing all the details the Assessing Officer proceeded to calculate interest for the whole assessment year. Since it is evident from the details submitted by the lower authorities that the assessee has obtained the loan from DHFL only in October 2017 and has advanced the same to various parties out of the said loan, we see no logic in Assessing Officer calculating interest for the whole year. Therefore we hold that there is no infirmity in the findings of the CIT(A) deleting the addition towards interest. This ground of the re....
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.... amount of Rs. 108.04 crores advances are given to the parties as above. The assessee has also explained to the Assessing Officer that the advances outstanding include the interest accrued net of TDS. From the perusal of the above table and the other submissions as reproduced in the assessment order it is clear that the assessee has extended a loan of Rs. 106.61 crores out of the loan amount of Rs. 108.04 crores. It is also clear that the amount of outstanding advances includes the interest accrued on the advance net of TDS. In the order of assessment, we notice that the Assessing Officer has not considered any of the submissions but has simply calculated the difference between advances outstanding as of 31/03/2018 and loan balance as on th....