Once the assessment framed disallowed/ added interest expenditure, principal can not be enhanced: ITAT Delhi

A & A Capital Services Pvt Ltd Vs ITO (ITAT Delhi)

In the above case ITAT deleted the amount enhanced by CIT (A) u/s 251 (1) (a) by considering that once the assessment framed had disallowed/ added interest expenditure, the corresponding principal sum could not have been taken as subject matter of enhancement.

Assessment completed section 143(3) disallowing assessee’s interest expenditure of Rs. 5,47,39,150/- unexplained u/s 69C on the ground that assessee failed to plead and prove any satisfactory explanation in respect of the loan amount of Rs. 90.52 crores which was

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