Netting off Interest Expenditure against Interest Income in absence of direct relation Not Allowed

Deena Asit Mehta Vs DCIT  (ITAT Mumbai) The issue under consideration is whether the netting off interest expenditure against interest income is allowed u/s 56 of Income Tax Act? ITAT states that, though, similar disallowance was made by the Assessing Officer in assessment year 2012–13, which was confirmed by learned Commissioner (Appeals), however, the assessee did not contest such disallowance before the Tribunal. Even otherwise also, the assessee had not established on record that the interest expenditure  is directly incurred for earning interest income. That being the case, ITAT uphol...