2025 (7) TMI 243

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....PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeal)-2, Gurgaon (hereinafter referred to as 'the CIT(A)') dated 30.10.2019, for assessment year 2016-17. 2. Shri Navin C. Agrawal, appearing on behalf of the assessee submits that the solitary issue raised by the assessee in appeal is with regard to disallowance of inter....

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....ounting to Rs. 85,517.40 was also debited to party account. Thus, the interest on Home Loan account was not debited to Interest Account claimed in Profit and Loss Account. Besides Rs. 30,00,000.00 were paid out of own funds. With respect to payment to Panorama, Mumbai he stated that Rs. 27,36,000.00 was paid as booking advance for a flat at Mumbai. Money was paid out of own fund. 2.2. The AO ha....

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....5,852.00 (iii) Interest charged by ICICI Bank on the loan 85,517.40   1,14,51,369.40 The interest on above housing loan has not been charged to P&L account. This fact was repeatedly brought to the notice of AO during assessment proceedings on 01.03.2018, 16.07.2018 and 12.10.2018. However, the AO erred in disallowing interest expenditure on the premise that the assessee has deb....

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....the business of the assessee, hence, the same was disallowed. 4. Both sides heard, orders of the authorities below examined. The short issue for consideration before the Tribunal is with regard to disallowance of expenditure Rs. 3,11,520/-. The AO has disallowed aforesaid interest expenditure holding that the assessee has diverted funds for non business purposes. 5. The stand of assessee is ....