Haresh Ravji Majethia Vs ACIT (ITAT Mumbai)
In Haresh Ravji Majethia (AY 2014-15), the AO disallowed interest of ₹7.64 L paid on unsecured loans and denied set-off of brought-forward losses. The ITAT observed that in earlier assessment years the genuineness of the same loan creditors had already been accepted by CIT(A). Since identity, creditworthiness & genuineness stood established and TDS was duly deducted, interest paid on such loans could not be disallowed. Accordingly, the addition relating to interest expenditure was deleted.
Regarding brought-forward losses, the Tribunal noted that denial arose due to pending disputes in earlier years; therefore, the issue was restored to CIT(A) for adjudication after final outcome of those appeals. The appeal was thus partly allowed for statistical purposes, with remaining legal grounds kept open
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the ld. Commissioner of Income Tax appeal ADDL/JCIT-A to Vadodara [for brevity ‘the ld. CIT(A)], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2014-15, date of order 28.07.2025. The impugned order emanated from the order of the ld. Commissioner of Income Tax 29(1), Mumbai (for brevity the Ld. AO) order passed under section 143(3) of the Act date of order 26.12.2016.
