TaxTMI 
TaxTMI 
2025 (7) TMI 587
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....wn and country planning Haryana for bank guarantee claimed by assessee as business income of Rs. 12,61,455/- is totally unlawful and arbitrary and needs to be quashed. 2. Disallowance of interest claimed u/s. 24(b) of Rs. 35,41,233/- of the Act are unlawful and arbitrary and needs to be quashed. The assessee claimed interest of Rs. 35,41,233/- u/s. 24(b). This expense was incurred by way of interest paid to financial institution on loan taken by the assessee for purposes of the property. 2. Brief facts of the case are that assessee is engaged in the business of real estate. The assessee company e-filed its return of income for AY 2015-16 declaring income of Rs. 20,53,620/-. Thereafter, the case was assessed u/s. 143(1) on 1.3.20....
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....rs. (Supra) wherein, the Coordinate Bench of this Tribunal has decided the issue in dispute in favour of the assessee by holding as under:- "3. I have considered rival submissions and perused material on record. In so far as the factual aspect relating to the issue in dispute are concerned, it is a fact that both the assessee have entered into concession agreements with FCI for construction, operation and maintenance of Silo Complex. In terms of the concession agreements, the assessee are required to furnish bank guarantees for which the concerned banks have kept securities by way of fixed deposits. Thus, it cannot be denied that the fixed deposits kept with banks are in connection with the business activity of the assessee. ....
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....hence, we set aside the orders of the authorities below and decide the issue in favour of the assessee. 7. Apropos ground no. 2 relating to disallowance of interest u/s 24(b) is concerned, the interest income u/s. 24(b) amounting to Rs. 35,41,233/- against rental income on property was added back to the income of the assessee company. In appeal, Ld. CIT(A) observed that nexus between loan and purchase of house property was not established as the interest is on Loan Against Property and not loan for purchase of property, hence, he upheld the fining of the AO that the interest of Rs. 34,41,233/- does not fall within the ambit of section 24(b) of the Act. 8. We have heard both the parties and perused the records. Before us, Ld. Counsel f....
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....dence while arguing the case on merits. THE BRIEF FACTUAL MATRIX IS AS UNDER: - (A-i) Assessee had earned Rs. 12,61,455/- as interest from fixed deposit receipts which were made to be kept in lien against Bank Guarantee issued in favour of Director General Town and Country planning Haryana. This was against EDC/IDC/IDW charges payable by the Company for release of its real estate license. The Assessee under business requirements was obliged to do it i.e. make these FDR to be submitted for deferment of this charges. (A-ii) Assessee has rightly deducted the interest released on FDR from the value of Inventory (work in progress) in Books of A/cs and duly reflected in A/cs of Balance sheet in respect of Assessment Yea....
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....d been overlooked by CIT. The factual aspect viz-a-viz amount utilized out of 2nd loan for repayment to lender from whom amount was taken and repaid to PNB Bank is annexed in the Table marked Annexure A &Annexure B with supporting documents alongwith this application (addl. Evidence). 5. Appellant was prevented by sufficient cause for not placing the same before CIT (A)-16, New Delhi. The earlier counsel had made efforts in proceedings before lower authority but inadvertently the counsel could not place the documents annexed in Annexure A and Annexure B (para 4) with supporting documents even though same were clearly visible from record. The earlier counsel had tried to explain in earlier situation (attention is invited to....
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....14. There is no reason with Respondent to disallow the deduction as Assessee had been regularly and bonafidely claiming the said deduction. Computation of income / balance sheet of earlier assessment year 2013-14 is enclosed with this submissions. 8. It is submitted that no prejudice will be caused to the respondent on allowing present application i.e. allowing Addl. Documents as mater is yet to be heard on merits and both sides have to argue the same and this Hon'ble Tribunal in the last fact finding authority. PRAYER: - In view of the above it is humbly prayed that above additional evidence as prayed in this application be allowed to be produced and same be taken on record and be considered while adjudicatin....