Devendra Kumar Aggarwal Vs. ITO, Ward-1(4), Gurgaon

Parties Involved

Facts Summary

The assessee, Devendra Kumar Aggarwal, filed his return of income for Assessment Year 2017-18 on 01.08.2017 declaring a total income of Rs. 89,41,010/-. He offered interest income of Rs. 2,20,65,618/- under the head 'income from other sources'. The assessee claimed a deduction of interest paid on loan amounting to Rs. 2,13,44,204/- under section 57 of the Income-tax Act, 1961. The Assessing Officer disallowed this deduction as the assessee did not provide a nexus statement linking the funds borrowed with the funds utilized. This disallowance was upheld by the Commissioner of Income Tax (Appeals). The assessee subsequently filed a party-wise and date-wise nexus statement before the Tribunal.…

Legal Issues

• 1. Whether the assessee is entitled for deduction of interest paid on loan u/s 57 of the Act against interest income on loan offered to tax under the head income from other sources.

Judgment Outcome

Decided in favour of Assessee.

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