Sarbinder Singh Bindra vs. Asst. CIT, Circle-47(1), Delhi

Parties Involved

Facts Summary

The assessee, Sarbinder Singh Bindra, is an individual and proprietor of M/s TSB Overseas. He filed his return of income on 06/09/2016 declaring a total income of Rs.1,53,94,250/-. The assessment was taken up for limited scrutiny and concluded on 26/12/2018 with an addition of Rs.1,33,85,998/- by disallowing certain interest expenses. The assessee filed an appeal before the Ld. CIT(A), which was dismissed. Subsequently, the assessee filed this appeal before the Income Tax Appellate Tribunal. The assessee acquired immovable property for Rs.10,28,70,500/- during the year under appeal. The Assessing Officer disallowed interest expenses of Rs.1,13,15,755/-, later reduced to Rs.99,19,025/-, on the grounds that the borrowed funds were utilized for the acquisition of the property.…

Legal Issues

• 1. Whether the completion of assessment was outside the scope of limited scrutiny and against CBDT instructions.
• 2. Whether the disallowance of Rs.1,13,15,755/- (later reduced to Rs.99,19,025/-) was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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