TaxTMI 
TaxTMI 
2026 (5) TMI 724
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....company namely Dustven Private Limited. The assessee claimed that the company was in need of fund. He arranged borrowing of Rs. 1.77 crores from several parties. The fund was directly credited into bank of the company on his behalf by the lenders. The company debited interest of Rs. 20,49,500/- on the impugned borrowing and TDS of Rs. 2,04,950/- deducted in his name. 3. The impugned interest of Rs. 20,49,500/- was offered to tax as income under the head other sources. Against the income corresponding expenses under section 57 of the Act were claimed for Rs. 20,49,500/- on account of interest paid to the lenders. However, the AO found that the assessee has not substantiated the payment of interest of Rs. 20,49,500/- to the lenders. Hence,....
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.... the assessee is that he has simply organized the borrowings for the company and the borrowing was directly given to the company and the company directly paid the interest to the lenders. In such circumstance where is the need to issue the TDS certificate in favour of the assessee. If the assessee received the TDS certificate on deduction on interest payment and claimed the benefit of the same, then he should have offered the corresponding income accrued on account of deduction of TDS. If the income is accrued to the assessee, the onus is upon the assessee to establish as to how he has made the payment to the lender. In the instant case, all these aspects were not examined by the lower authorities. Under these circumstances, I am of the vie....
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....aluru in ITA No. 1198/Bang/2018. Pursuant thereto, multiple statutory notices under sections 129 and 142(1) were issued, adequate opportunity was granted and the appellant made submissions along with certain confirmations. The Assessing Officer has examined the matter afresh, considered the submissions and confirmations filed, and thereafter passed a detailed speaking order. No violation of principles of natural justice is discernible. Since the grounds 1,2 and 3 are general in nature, do not require separate adjudication and are dismissed. 6.2.1 The appellant claimed deduction of Rs. 20,49,500/- under section 57 against interest income assessed under the head "Income from Other Sources". The claim was that the funds were borrowed ....
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.... actual incurrence of expenditure, genuineness of payment, squarely lies on the assessee. In the present case, while the interest income has been offered to tax, the appellant has failed to prove that the corresponding interest expenditure was actually incurred by him. Mere confirmations, unsupported by bank trails, vouchers, or statutory compliance, do not discharge this burden. The disallowance of Rs. 20,49,500/- u/s 57 is confirmed. 5. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us. 6. The learned AR before us submitted that the assessee has merely acted as a facilitator in arranging funds for the company. The loans were directly advanced by third party lenders to the company and th....
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.... materials available on record. The undisputed facts are that the assessee had arranged funds from third party lenders which were directly advanced to the company, namely Dustven Private Limited. It is also not in dispute that the company has directly paid interest to such lenders. However, the TDS on such interest amounting to Rs. 2,04,950/- was deducted in the name of the assessee and credit thereof was claimed by him. 8.1 In the earlier round, the Tribunal had clearly directed that once TDS credit is claimed by the assessee, the corresponding income is deemed to have accrued in his hands and the onus lies upon him to demonstrate as to how such income has been passed on to the actual lenders. The AO was specifically directed to examine....