ACIT-32(1), MUMBAI, MUMBAI vs. VKT VENTURES LLP, MUMBAI

ITA 2349/MUM/2024Status: DisposedITAT Mumbai19 August 2024AY 2014-15Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI SUNIL KUMAR SINGH ( (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that while the assessee had suo motu disallowed some interest, the calculation and justification were lacking. Therefore, the issue was restored to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee, engaged in investment and finance, borrowed funds and advanced some loans interest-free or at lower rates. The Assessing Officer disallowed a portion of the interest paid on borrowed funds, considering it not for business purposes.

What were the issues?

Whether interest paid on borrowed funds advanced as interest-free or low-interest loans is disallowable under Section 36(1)(iii) and the correctness of the calculation of such disallowance.

Which sections of the Income-tax Act were involved?

Section 36(1)(iii)

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Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SUNIL KUMAR SINGH

For Appellant: Ms. Rajeshwari Menon, Sr. DR
Hearing: 19/08/2024

PER OM PRAKASH KANT, AM

These appeals by the Revenue are directed against two separate orders dated 06.03.2024 and 07.03.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2013-14 and 2014-15 respectively.

VKT Ventures LLP ITA Nos. 2322 & 2349/MUM/2024

2.

The sole ground involved in both these appeals is in respect of The sole ground involved in both these appeals is in respect of The sole ground involved in both these appeals is in respect of the disallowance of interest u/s 36(1)(iii) of the Income-tax Act, the disallowance of in

The order continues below.

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