Ladhuram Toshniwal & Sons Pvt. Ltd. Vs. ACIT, CC-4(4), Kolkata
Parties Involved
Facts Summary
The assessee, Ladhuram Toshniwal & Sons Pvt. Ltd., filed its return of income for Assessment Year 2018-19 declaring a total income of Rs. 99,27,760/-. The case was selected for scrutiny, and notices under sections 143(2) and 142(1) were issued. The Assessing Officer (AO) passed an assessment order under section 143(3) determining the total income at Rs. 1,49,36,610/- by making two additions: interest on unsecured loan under section 36(1)(iii) of Rs. 35,88,850/- and disallowance of rent paid under section 40a(2)(b) of Rs. 5,20,000/-. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who sustained the addition of Rs. 35,88,850/- but deleted the addition of Rs. 5,20,000/-. Dissatisfied, the assessee further appealed to the ITAT.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the addition of Rs. 35,88,850/- on account of interest on unsecured loan under section 36(1)(iii) is valid.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
1 precedent cited in this judgement.
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