Tax Tribunal Overturns PCIT's Revision; Assessee's Appeal Succeeds on Interest Expense and Unexplained Cash Credits.

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....The assessee borrowed loans from financial institutions at an interest rate of 12.75% and advanced loans to group companies or relatives at 12% interest rate. The assessee restricted the claim of interest expense u/s 57 to 12%, being the interest earned. The Principal Commissioner of Income Tax (PCIT) invoked revision u/s 263, disallowing the interest income, concluding the assessee failed to substantiate the nexus between the interest-bearing loans taken and advances made. The PCIT also held the Assessing Officer (AO) wrongly added unexplained cash credits to income without considering the assessee's submissions. The Income Tax Appellate Tribunal (ITAT) observed the assessee disclosed rental income correctly. Relying on the Supreme Court's.........