2024 (6) TMI 1367

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.... filed by Hasmukhlal Harjivan Shah Huf (assessee /appellant) against the appellate order passed by Addl. Commissioner of Income-tax (Appeals)-5 [the learned CIT (A)] Kolkata for A.Y. 2017-18, dated 9th January, 2024, wherein the appeal filed by the assessee against the assessment order dated 23th December, 2019, passed under Section 143(3) of the Income-tax Act, 1961 (the Act) by the Income Tax Wa....

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....sked to show cause about the claim of deduction under Section 57(iii) of the Act. The assessee submitted that the assessee has paid interest to some of the parties at the rate of 12% and to the borrower the interest was paid at the rate of 15%. Due to economic slowdown the parties to whom the loans were provided the interest rates were negotiated at the rate of 12%. Thus, the assessee has paid int....

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....ontention. The fact shows that the assessee has earned interest income of Rs. 37,42,093/- and have incurred expenses of Rs. 30,84,320/- resulting into net interest income of Rs. 6,57,773/-. The learned Assessing Officer has assumed that assessee should have earned interest income from loans given at the rate of 15% and thereby made the addition at the rate of 3%. This is against the actual interes....