JAYANTHI GANESAN,TRICHY vs. ACIT CIRCLE - 1, TRICHY

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ITA 965/CHNY/2022Status: DisposedITAT Chennai21 February 2023AY 2015-20162 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that a similar issue for AY 2014-15 was set aside to the Assessing Officer for fresh adjudication. Given the identical facts, the Tribunal issued similar directions for the current year.

What were the facts?

The assessee's appeal pertains to AY 2015-16, concerning an interest disallowance of Rs. 34.22 Lacs made under Section 57 of the Act. The disallowance was based on the ground that the interest was paid by the assessee's daughter.

What were the issues?

The primary issue was the validity of disallowing interest expenditure paid by the assessee's daughter. The Tribunal considered the precedent set in a previous assessment year.

Which sections of the Income-tax Act were involved?

Section 57

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C/SMC’ BENCH, CHENNAI

Before: SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 15-09-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 31-12-2017. The sole grievance of the assessee is interest disallowance u/s 57 of the Act.

2.

The Registry has noted delay of 02 days in the appeal, the condonation of which has been sought by Ld. AR. Considering the period of delay, the delay is condoned and the appeal is admitted for adjudication on merits.

ITA No.965/Chny/2022 - 2 - 3. The Ld. AR, at the outset, submitted the similar issue arises in AY 2014-15 and the Tribunal has set aside the issue to the file of Ld. AO vide order dated 09-11-2021. The copy of the order has been placed on record. The Ld. AR sought similar directions in this year. These facts remain uncontroverted.

4.

Upon perusal of assessment order, it could be seen that the interest expenditure of Rs.34.22 Lacs has been disallowed u/s 57 on the ground that the same was paid by assessees’ daughter. The Ld. CIT(A) upheld the same against which the assessee is in further appeal before me.

5.

I find that similar disallowance was made in assessee’s case for AY 2014-15 wherein the matter has been restored back by Tribunal to the file of Ld. AO for fresh adjudication. Facts being pari-materia the same, similar directions are issued in this year.

6.

The appeal stand allowed for statistical purposes.

Order pronounced on 21st February, 2023.

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