Pawan Garg vs. DCIT

Parties Involved

Facts Summary

The appeal in ITA No.3472/Del/2023 for Assessment Year 2017-18 arises from the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 04.10.2023, against the order of assessment passed under section 143(3) of the Income-tax Act, 1961, dated 30.10.2019 by the Assessing Officer, NFAC, Delhi. The assessee, Pawan Garg, claimed a deduction of interest paid to the bank against interest income offered to tax while computing income from other sources. The assessee had taken a loan of Rs. 4.50 crores from Allahabad Bank at an interest rate of 12.7% and utilized it for giving a loan to Curo India Pvt. Ltd at an interest rate of 14% per annum. The assessee earned interest income of Rs. 52,97,393/- from the company on the loan advanced to them. The assessee claimed interest payment made to Allahabad Bank as a deduction under section 57(iii) of the Act, which was denied by the lower authorities.…

Legal Issues

• 1. Whether the assessee is entitled to claim deduction of interest paid to bank against interest income offered to tax while computing income from other sources.

Judgment Outcome

Decided in favour of Assessee.

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