Kedar Shashank Ranade vs. ACIT, Circle – 2, Pune

Parties Involved

Facts Summary

The assessee, engaged in real estate business, filed his return of income for the assessment year 2018-19 declaring total income at Rs.52,98,930/-. The case was selected under CASS for complete scrutiny. The Assessing Officer disallowed an amount of Rs.6,25,496/- as interest on loans/advances given without charging any interest and made an addition of Rs.4,55,190/- as excess interest paid. The CIT(A) dismissed the appeal filed by the assessee. The assessee appealed to the Tribunal against the disallowance of interest.…

Legal Issues

• 1. Disallowance of interest of Rs.6,25,496/- u/s 36(1)(iii) on account of loans/advances given interest-free.
• 2. Disallowance of interest of Rs.4,55,190/- on the ground that the assessee had paid interest on the loans taken at a higher rate than the market rate.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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