SRI SUNIL KUMAR KAKRANIA,KOLKATA vs. ACIT, CIR-24, KOLKATA, KOLKATA

This appeal of assessee is time barred by 28 days. The assessee has filed condonation petition along with medical certificate explaining the reasons for the delay, which are available in file. On being asked by the bench to Ld. Sr. DR for condonation of delay, he has not objected to the same. Hence, we condone the delay and admit the appeal for hearing. At the time of hearing nobody was appeared for and on hejalf of assessee. Hence, I dispose of this appeal, after hearing Ld. Sr. DR.

I have heard Ld. Sr. DR and gone through facts and circumstances of the case. I find from the assessment order and the order of CIT(A) that the assessee is unable to co- relate the interest payment of Rs.3,61,953/- with that of the business activity. Accordingly, both the authorities have decided the issue against the assessee. I find from the case record i.e. the order of CIT(A) that the assessee has taken loan from various banks and invested in shares which is one of the activities of the assessee. The 2 & 515/K/2015 Pinaki Ranjan Mondal AY 2002-03 & 2003-04 assessee has claimed interest payment as expenses under the head income from other sources and claimed the loss. However, both the authorities below have stated that there is no income accrued to the assessee on account of share dealing, hence interest is not allowable. I find that once the assessee is in the share trading activity although it has income from other sources, the assessee is entitled for deduction of interest in term of section 57 of the Act. The AO will look into the facts of the case and will decide the issue afresh in accordance with law. Hence, I restore the matter to the file of AO for fresh adjudication. This appeal of assessee is allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes.

Order is pronounced in the open court on 11.12.2015. Sd/- (Mahavir Singh) Judicial Member Dated : 11th December, 2015 Jd.(Sr.P.S.) Copy of the order forwarded to: