SUKHJOT SINGH SODHI ,PUNJAB V. ACIT CIRCLE 5(3)(1), DELHI

ITA 237/DEL/2022

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31520 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Avdhesh Kumar Mishra, Accountant Member ITA No. 237/Del/2022 : Asstt. Year : 2016-17 Sukhjot Singh Sodhi, CA Ashwani Kalia, 237, Basant Avenue, Maqbool Road, Amritsar, Punjab-143001 Vs ACIT, Circle-5(3)(1), Noida, Uttar Pradesh-201301 (APPELLANT) (RESPONDENT) PAN No. AAZPS5480M Assessee by : None (Adjournment rejected) Revenue by : Sh. Sahil Kumar Bansal, Sr. DR Date of Hearing: 19.12.2024 Date of Pronouncement: 31.12.2024 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2016-17, arises against the order of CIT(A)/NFAC, Delhi’s order dated 08.12.2021 in DIN & order No. ITBA/NFAC/S/250/2021- 22/1037586221(1), in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). 2. Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte. 3. The assessee pleads the following substantive grounds in the instant appeal: “1. That the Id.CIT(A) National Faceless Appeal Centre has erred in confirming the addition of Rs.6197072 made by the AO to the returned income. 2. That the Id.CIT(A) National Faceless Appeal Centre has erred in law and on facts in holding that the assessee was not able to prove the nexus between the ITA No. 237/Del/2022 Sukhjot Singh Sodhi 2 borrowed funds on which interest was paid and interest bearing advance given by the assesee thereby confirming the disallowance of interest paid. 3. That the Id. CIT(A) National Faceless Appeal Centre has erred in law and on facts in confirming the disallowance of interest paid by the assesee against the interest income earned by the assesse. 4. That the Id. CIT(A) National Faceless Appeal Centre has erred in law and on facts in not allowing opportunity to the assesee in case he was not satisfied with the evidences filed by the assesee in support of deduction for interest paid against the interest income. 5. That the order is bad in law and on facts” 4. Suffice to say, a perusal of the instant case file reveals that both the learned lower authorities have disallowed the assessee’s claim of interest expenditure amounting to Rs.61,97,072/- claimed u/s 57(iii) of the Act paid to M/s Dewan Housing Finance Corporation Ltd. (“DHFL”) as not having any “live” nexus with the interest income to the tune of Rs.61,97,072/- received from M/s Urbainia Spaces Pvt. Ltd. 5. Mr. Bansal vehemently argues that it was the assessee’s onus only to prove the impugned section 57(iii) claim and the disallowance herein has been rightly made on account of his failure to this effect. 6. We have given our thoughtful consideration to the assessee’s pleadings and the Revenue vehement arguments reiterating their respective stands. We are of the considered view that given sole substantive issue between the parties is that of live nexus between the assessee’s interest expenditure claim vis-à-vis interest income, it is deemed it appropriate in the larger interest of justice to restore the same back to the Assessing Officer so as to enable him to file all necessary supportive evidence to this effect subject to a rider that he ITA No. 237/Del/2022 Sukhjot Singh Sodhi 3 shall plead and prove the case within three effective opportunities, at his own risk and responsibility, in consequential proceedings. Ordered accordingly. 7. This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 31/12/2024. Sd/- Sd/- (Avdhesh Kumar Mishra) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 31/12/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "