TaxTMI 
TaxTMI 
2025 (10) TMI 209
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.... by a petition for condonation of delay. The delay involved is 459 days. In support thereof, the assessee has filed an affidavit affirming on oath that he had received the impugned appellate order on 21/09/2023. Unfortunately, on 30/09/2023, he suffered a grievous fall from the staircase, which incapacitated him and required prolonged bed rest for about two months. During this period, he had instructed his household staff to forward the relevant documents to the office of his Chartered Accountant. However, due to inadvertence on the part of the staff, the papers were never delivered. The assessee remained under the bona fide impression that the matter was being attended to, only to discover later, upon receipt of a penalty notice, that no a....
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....f the transaction, merely echoed the Assessing Officer's conclusion and upheld the disallowance. 6. Before us, the learned counsel for the assessee expounded that the loan of Rs.79.50 lakh was in fact availed against mortgage of land and not towards acquisition of a residential house. The assessee consistently serviced interest at 10.75% on this loan, while the borrowed funds were advanced to his wife on which interest at 12% was duly charged and recovered. It was emphasised that the entire arrangement was genuine, the interest received was duly offered to tax, and in earlier years too, the very issue had arisen and stood decided in favour of the assessee by this Tribunal in AY 2009-10. 7. In order to appreciate the continuity and fac....
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....o direct nexus between the bank borrowing and the lending to the spouse was established, and that the lower authorities were correct in disallowing the claim. 10. We have given our thoughtful consideration to the rival submissions, the material placed before us, and the binding decision of the co-ordinate Bench in assessee's own case. The facts are in pari materia with those in AY 2009-10. The assessee has demonstrated that the very funds borrowed from ICICI Bank, on which interest was paid at 10.75%, were advanced to his wife yielding taxable interest at 12%. The borrowing and lending are thus inextricably linked. The Tribunal in the earlier year had lucidly held as follows: 4. Ground Nos. 1 & 2 are interrelated, hence, dispose....
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....purposes of house purchase rather the same being used to earn the interest. They simply disown the argument of the assessee that sanction letter issued by the ICICI Bank mentioned that it is home loan sanctioned to Mr. Neeraj Nath. The concept of substance over form will apply here and assessee is succeeded in establishing the nexus between the amount of interest earned and interest paid ie. funds given to Mrs. Preeti Nath out of loan taken from ICICI Bank. We do not have any hesitation in accepting the claim of the assessee under section 57 of the Act resulting in netting of the interest income of Rs. 12,74,491/- against interest incurred of Rs. 10,46,245/-. 11. In the light of the aforesaid decision, which squarely covers the controver....
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....s to the addition of Rs. 60 lacks by this allowing the exempt income by the sale by agriculture land. It is noticed that certain cash amount were noticed by the department in the bank account of the assessee. When asked, assessee has stated that the said amount was received on account of sale of agriculture land. The Ld. A.O. has discussed the issue in the para 5 of his order. The Ld. A.O. made this addition as the appellant failed to submit the proof any such sale deed showing receipt of such cash. During the course of appellate proceedings, the said document is filed by the AO by filing application dated 24.08.2023 under rule 4SA of the Income Tax Rules. The documents produced by the appellant were sent to the assessing officer for his co....