M/s. Ashapura Developers Vs. ACIT Circle-1, Thane
Parties Involved
Facts Summary
The assessee, M/s. Ashapura Developers, a partnership firm engaged in the business of builder and developer, filed its return of income for the assessment year 2014-15 declaring a total income of Rs. 21,67,520/-. The case was selected for scrutiny, and the Assessing Officer observed discrepancies in the unsecured loans and disallowed certain interest expenditures. The total income was assessed at Rs. 84,71,400/-. The assessee appealed before the CIT(A), providing evidence to establish the genuineness of the unsecured loans and the availability of interest-free funds. The CIT(A) deleted the addition under section 68 but sustained a partial disallowance under section 36(1)(iii).…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the learned CIT(A) was justified in sustaining a partial disallowance of interest of Rs. 7,70,069/- under section 36(1)(iii).
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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