Case Law Details
Biren Suresh Karani Vs ITO (ITAT Mumbai)
ITAT Mumbai held that disallowance of interest on unsecured loans unjustified as genuineness of loans and utilization of loan funds for business purpose not disputed and interest paid on open in balances of unsecured loan creditors.
Facts- The assessee is an individual and Prop. of M/s Vartsila, which is a dealer of pressure reducing valves. The assessee has filed the return of income AY 2012-13 disclosing a total income of Rs.10,23,840 and the return of income was processed u/s. 143(1) of the Act. Subsequently the case was selected for scrutiny and the notice u/s. 143(2) and 142(1) of the Act are issued.
AO not being satisfied with the claim of interest debited to profit &loss account, has made disallowance of interest of Rs.6,48,422 and also housing loan interest of Rs.37,965 and assessed the total income of Rs. 20,33,340 and passed the order u/s. 143(3) of the Act.
CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed.
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