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Income Tax Appellate Tribunal, H Bench, Mumbai
Before: Shri Shamim Yahya & Shri Saktijit Dey
This appeal filed by Revenue is directed against the order of the learned CIT(A)-37, Mumbai dated 05.09.2016 and it relates to A.Y. 2014- 15.
The issue raised in the appeal is that the CIT(A) erred in deleting the disallowance of interest of `1,08,66,516/-.
Brief facts of the case are that during the scrutiny proceedings, the AO has observed that the assessee has paid interest of `1,08,66,516/- to M/s. Grafton Merchant Pvt. Ltd. The AO has further observed that the interest paid to the Grafton Merchant Pvt. Ltd. was disallowed in the A.Y. 2013-14 as the assessee could not prove the credit worthiness of the lender and genuineness of loan transaction as the unsecured loan of `3,75,00,000/- taken from Grafton Merchant Pvt. Ltd. was treated as non- genuine transaction. Therefore, the AO has disallowed claim of interest of `1,08,66,516/ and added back to the total income.
M/s. H.K. Pujara Builders 4. Upon assessee’s appeal the learned CIT(A) referred to the order of the CIT(A) for A.Y. 2013-14 and held as under: -
“It is evident from the order of CIT(A)-37 that the loan of Rs.3,75,00,000/- is genuine. The A.O. has made addition of Rs.1,08,66,516/- on account of interest paid on loan. As the loans from the above mentioned party have been held to be genuine, the interest paid of Rs.1,08,66,516/- is also held to be genuine. Considering the earlier decision of CIT(A)-37, the A.O. is directed to delete the said addition. This ground of appeal is allowed.” Against the above order the assessee is in appeal before us.
5. At the outset it is noted that the aforesaid order of the learned CIT(A) for A.Y. 2013-14 is confirmed by the ITAT in for A.Y. 2013-14 vide order dated 22.02.2019. In this view of the matter there is no infirmity in the order of the learned CIT(A).
Moreover, the tax effect in this case is below the limit fixed by CBDT vide Circular No. 17/2019 dated 8th August, 2019 for filing appeals before ITAT.
In the result, the appeal filed by the Revenue is dismissed.