Deepak Batra Vs CIT(A)/NFAC, Delhi

Parties Involved

Facts Summary

The case pertains to the appeal of Deepak Batra for Assessment Year 2018-19 against the order of the CIT(A)/NFAC, Delhi. The assessee claimed interest expenditure under section 57(iii) of the Income Tax Act, 1961. The lower authorities disallowed the claim on the grounds that the assessee, being a director in M/s Shamsons Polymers (P) Ltd., had availed an interest-bearing loan facility from M/s HSBC Bank, where the company paid interest at 6%. The lower authorities held that the assessee was not entitled to a differential rate of interest at 3.4% as a deduction against his interest income under section 57(iii).…

Legal Issues

• 1. Whether the assessee is entitled to claim differential interest rate under section 57(iii) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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