Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARD :: TDS :: articles on VAT and GST in India :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: empanelment :: ACCOUNTING STANDARDS
From the Courts »
  Nishant Construction Pvt. Ltd vs. ACIT (ITAT Ahmedabad)
 Samson Maritime Ltd vs. CIT (Bombay High Court)
 Mother Hospital Pvt. Ltd vs. CIT (Supreme Court)
 Larsen & Toubro Ltd vs. State of Jharkhand (Supreme Court)
 Nishant Construction Pvt. Ltd vs. ACIT (ITAT Ahmedabad)
 Flipkart India Private Limited vs. ACIT (Karnataka High Court)
 JSW Steel Ltd vs. ACIT (ITAT Mumbai)
  CIT vs. Uday M. Ghare (Bombay High Court)
 Ajay Enterprises Pvt. Ltd. Vs. Assistant Commissioner Of Income Tax (Tds) And Ors.
 Rakesh Raj And Associates Vs. Commissioner Of Income Tax, Central-Ii & Anr.
 Venu Charitable Society And Anr. Vs. Director General Of Income Tax

ACIT, Circle-16(1),Circle-16(1), New Delhi. Vs. Narinder Singh Kohli, 47, Jor Bagh, New Delhi.
June, 18th 2015
                DELHI BENCH "E" NEW DELHI

                            ITA no. 3599/Del/2012
                            A.Y. 2009-10

ACIT, Circle-16(1),              Vs.   Narinder Singh Kohli,
Circle-16(1), New Delhi.               47, Jor Bagh, New Delhi.

                                       PAN: AAFPK 6203 N

( Appellant )                          ( Respondent )

            Appellant    by :          Shri P. Dum Kanunjna Sr. DR
            Respondent by   :          Shri Satyajit Goyal CA

            Date of hearing      :     11-06-2015
            Date of order        :     17-06-2015.



      This appeal, by the revenue, is directed against the order dated 2-4-

2012 passed by the ld. CIT(A)-XIX, New Delhi in appeal no. 270/2011-12

relating to A.Y. 2009-10.
                                                                           ITA 3599/Del/2012
                                                                 ACIT Vs. Narinder Singh Kohli

2.     For A.Y. 2009-10, the assessee filed his return of income declaring

loss of Rs. 2,28,12,072/-. The assessee, late Shri Narinder Singh Kohli, in

the relevant assessment year derived income from salary from company as

director, income from house property, income from business, dividend

income and interest income. The AO noticed from P&L A/c that assessee

had claimed deduction on account of interest payment of Rs. 1,00,23,037/-

i.e. paid to the parties from whom the loan had been taken, whereas the

assessee had also given loans on which interest of Rs. 68,75,452/- had been

received from the parties to whom loan had been given. He noted from the

balance-sheet that assessee had a debit balance of Rs. 1,57,21,565/- in the

capital account. From this he concluded that interest bearing funds had been

utilized for personal purpose and, therefore, he disallowed a sum of Rs.

18,86,588/- computed @ 12% of Rs. 1,57,21,565/- out of interest expenses.

2.1.   Ld. CIT(A) deleted the disallowance after considering the assessee's

detailed submissions, as reproduced in para 6.1 of his order wherein it was

clearly demonstrated that the debit balance had arisen because of loss

incurred in the business.

2.2.   Aggrieved, the revenue is in appeal before us. Sole effective ground is

as under:
                                                                              ITA 3599/Del/2012
                                                                    ACIT Vs. Narinder Singh Kohli

       "Ld. CIT(A) erred in law and on the facts of the case in
       deleting the addition of Rs. 5,10,17,971/- made by the AO u/s
       43B(f) of the I.T. Act."

3.     We have considered the submissions of both the parties and have

perused the record of the case. The extract of capital account, as submitted

by assessee, was as under:

       Opening balance                            6,22,04,273.69
       Add: Annuity Received                             2,592.00
       Loss during the year          1,96,18,778.51
       Gift made                     5,54,28,298.60
       Drawing                          7,04,100.00
       LIC premium                      1,27,040.00
       Medical Insurance                  34,695.00
       Income Tax 2008-09              13,20,009.00
       Security transaction tax 08-09 6,95,509.86                   7,79,28,430.97
                                                         (-)        1,57,21,565.28

3.1.   From a bare perusal of this capital account, it is evident that as against

the net debit balance of Rs. 1,57,21,565.28, the loss during the year was Rs.

1,96,18,778.51. Therefore, it is evident that the net debit balance in the

capital account was on account of loss during the year which was more than

the net debit balance in the account. Therefore, AO wrongly inferred that

the borrowed funds were utilized for financing the net debit balance in the

capital account. Nothing has been brought on record to controvert the
                                                                       ITA 3599/Del/2012
                                                             ACIT Vs. Narinder Singh Kohli

finding of ld. CIT(A) in allowing relief to the assessee. We, accordingly,

uphold   the order of ld. CIT(A) on the issue in question. Ground is


4.    In the result, departmental appeal is dismissed.

Order pronounced in open court on 17-06-2015.

       Sd/-                                         Sd/-
 (GEORGE GEORGE K.)                          ( S.V. MEHROTRA )
JUDICIAL MEMBER                              ACCOUNTANT MEMBER
Dated: 17-06-2015.
MP: Copy to :
   1. Assessee
   2. AO
   3. CIT
   4. CIT(A)
   5. DR
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions