Om Sri Maa Shakti Naman Vs. Asst. CIT Circle -32(2)

Parties Involved

Facts Summary

The assessee, Om Sri Maa Shakti Naman, filed an appeal against the order passed by the Commissioner of Income-tax (Appeals) for the assessment year 2014-15. The assessee claimed that the interest expenses amounting to Rs. 1,97,13,918/- were genuine and bonafide. The assessee argued that the interest income of Rs. 1,45,82,918/- and FD interest of Rs. 7,90,124/- netted off with the Interest Expense of Rs. 1,97,13,918/- resulting into net interest expense claim of Rs. 43,40,876/- debited in the P & L A/c is justifiable and does not require any correction/adjustment in the computation of business income. The assessee relied on precedents from the Calcutta High Court and Delhi High Court to support their claim. The Assessing Officer treated the interest income under the head 'Income from Other Sources' and did not reduce it from the business income, resulting in double taxation. The assessee argued that the interest income should be netted against the interest expense as per the Supreme Court's guidelines.…

Legal Issues

• 1. Whether the interest expenses claimed by the assessee are eligible for deduction?
• 2. Whether the interest income should be netted against the interest expense?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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