Taxability of interest expenses not relatable to business activity conducted by the assessee company

Last updated: 13 September 2021

Court :
ITAT Delhi

Brief :
These two cross appeals by Revenue and Assessee are filed against the order of Learned Commissioner of Income Tax (Appeals)-25, Delhi.

Citation :
ITA No:- 198/Del/2018

IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH: ‘F’: NEW DELHI)
(THROUGH VIDEO CONFERENCING)
BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
AND
SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER
ITA No:- 198/Del/2018
(Assessment Year: 2014-15)

DCIT,
Circle 20(1),
New Delhi.

M/s Provestment Securities Pvt.
Ltd.,
305, Rattan Jyoti Building,
18, Rajendra Place,
New Delhi-110008.

ITA No:- 293/Del/2018

(Assessment Year: 2014-15)

M/s Provestment Securities
Pvt. Ltd.

DCIT,
Circle 20(1),
New Delhi.

Revenue By : Shri Jagdish Singh, Sr. DR
Assessee By : Shri Rahul Chaurasia, CA

That the order dated 13-10-2017passed u/s 250 of the Income-tax Act, 1961 by the Learned Commissioner of Income-Tax (Appeals) 25, New Delhi is against law and facts on the file in as much as he was not justified to partly uphold the action of the Learned Deputy Commissioner of Income-Tax, Circle -20(1), New Delhi by sustaining the addition of Rs. 3,64,942/- made by the Assessing Officer by resort to the provisions of s. 36(1 )(iii) of the Income-tax Act, 1961 on account Interest paid on the loans received from shareholders.

2. Before we part, we hereby clarify, by way of abundant caution, that if for some reason it is found by either Revenue or the assessee, that the disputes under these appeals before us are not fully settled under the aforesaid VSVS, then Revenue and / or assessee, as the case may be, will be at liberty to approach ITAT for restoration of these appeals, in accordance with law.

3. This order was already pronounced on 01st September, 2021 in Open Court, in the presence of Representatives of both sides; after conclusion of the hearing. Now this written order is signed today on 02/09/2021.

Please find attached the enclosed file for the full judgement