TaxTMI 
TaxTMI 
TaxTMI 
2023 (11) TMI 244
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....sessment year 2008-09. 2. In its appeal, the assessee has raised the following grounds:- "1.01 The learned CIT(A) has failed to appreciate the fact that the learned Assessing Officer has erred in not providing the reasons recorded in writing, in spite of being asked by the Appellant, thus rendering the entire Assessment Proceedings and the consequential assessment order as null and void ab initio and illegal and bad in law. The Hon'ble CIT(A) also failed to appreciate the fact that the Hon'ble Delhi High Court in the case of Jagat Talkies Distributors [85 Taxmann.com 189] held that "merely because the Assessee did not repeat the request cannot mean that the Assessee waived its right to be provided the reasons. 2.01 The learned....
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....utation of income, the gross annual value of the property let out was Rs. 43,48,917, whereas as per the TDS certificate issued by AXIS Bank Ltd, the rent received by the assessee was Rs. 47,78,312. Since income to the tune of Rs. 4,29,395 has escaped assessment, proceedings under section 147 of the Act were initiated and notice under section 148 of the Act was issued on 26/07/2010. In response to the aforesaid notice, the assessee filed a revised return of income declaring a loss from house property to the tune of Rs. 11,17,529. On verification of the return filed by the assessee, in response to the notice issued under section 148 of the Act, it was observed that the property concerned which was let out was purchased by the assessee by obta....
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....ing the interest component on unsecured loan for the purpose of immovable property. 4. The learned CIT(A), vide impugned order, dismissed the grounds raised by the assessee on both the above disallowances. Being aggrieved, the assessee is in appeal before us. 5. During the hearing, the learned Authorised Representative ("learned AR") wishes not to press ground no.1 raised in assessee's appeal. In respect of ground no.2, the learned AR submitted that the assessee purchased the property by utilising the unsecured loans from directors and shareholders. During the year, the assessee had taken unsecured loans to the extent of Rs. 92,50,000 and the major portion of the same was utilised in repayment of the earlier loans. Thus, the assessee is e....
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.... parking space to Axis Bank for a monthly rent/license fee of Rs. 3,85,000. For the purchase of the aforesaid property, the said amount of Rs. 3,63,72,600 was paid by utilising unsecured loans from directors and shareholders aggregating to Rs. 3,67,82,200. During the year under consideration, the assessee availed unsecured loans to the extent of Rs. 92,50,000, a major portion of which is claimed to have been utilised for repayment of the earlier loans. The AO disallowed an amount of Rs. 3,55,893 under section 24(b) of the Act as the same is not pertaining to capital borrowed for the purpose of the said provision. However, as per the assessee interest paid on the loan taken for repayment of the earlier loan is allowable as deduction under se....
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....r repayment of the earlier loan. Therefore, we deem it appropriate to remand the issue arising in ground No. 2, raised in assessee's appeal, to the file of AO for de novo adjudication after examining the aforesaid aspect and thereafter in light of CBDT Circular No. 28 dated 20/08/1969. Accordingly, ground No. 2 raised in assessee's appeal is allowed for statistical purposes. 9. Insofar as ground No. 3, raised in assessee's appeal, is concerned, we find that M/s Nishkalp Investment & Trading Company Ltd. entered into an agreement dated 30/12/1998 with Ahura Chemicals Products Pvt. Ltd. for the purchase of 4816 B-class equity shares. From the perusal of the separate agreement dated 30/12/1998 amongst the aforesaid entities, forming part of t....