Aadya Overseas Private Limited Vs ITO (ITAT Delhi)
Mixed-funds dispute needs fresh verification: ITAT remands proportionate interest disallowance to AO
Delhi ITAT set aside the confirmation of proportionate interest disallowance of ₹16.58 lakh & remanded the matter to the AO for limited verification. The disallowance was sustained by CIT(A) on the ground that Assessee failed to produce documentary evidence to show that investments were not made from mixed funds & that borrowed funds were not used for non-business purposes.
Tribunal observed that Assessee had not discharged its onus before lower authorities; however, in the interest of justice, & considering that AO is the primary fact-finding authority, the issue deserved a fresh look based on evidences now placed before the Tribunal. ITAT directed AO to verify the documents, consider Assessee’s contention that impugned amounts largely represented old balances & routine charges (car/bank/financial charges), & decide afresh after granting due opportunity. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been preferred by the assessee against order dated 02.04.2025 of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi[hereinafter referred to as ‘ld. CIT(A)’] arising out of assessment order dated 23.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 pertaining to Assessment Year 2013-14. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
