Appellant appeals that disallowance made out of Interest Expenses be deleted

IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD “B” BENCH
 
(BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
& SHRI AMARJIT SINGH, ACCOUNTANT MEMBER)
[Through Virtual Court]

ITA. No: 2966/Ahd/2017
(Assessment Years: 2014-15)

Anurag Goel Delta Global
Ind. 903, Saffrom Tower,
Opp. Central Mall,
Panchvati, Ambawadi,
Ahmedabad-380006
PAN No. ACDPG4081G
(Appellant) 

Vs

I.T.O, Ward-1(1)(4),
Ahmedabad
(Respondent)

 Appellant by : Written Submission
 Respondent by : Shri R. R. Makwana, Sr. D.R.

ORDER

Date of hearing : 08-02-2021
Date of Pronouncement : 03 -05-2021

PER MAHAVIR PRASAD, J.M.

1. This appeal filed by the Assessee is directed against the order of the Commissioner of Income Tax (‘hereinafter called CIT(A)’) order no. CIT(A)-1/ITO Ward-

1(1)(4)/242/2016-17 order dated 28/09/2017. Assessee has taken following grounds of appeal:

Your appellant being aggrieved by the order passed by the learned Commissioner of Income Tax(Appeals)-!- Ahmedabad (herein after referred to as "Ld. CIT(A) u/s 250 of the act, presents this appeal against the same on the following grounds :-

1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in upholding the disallowance of Rs. 17,11,600/- out of total interest expenses on unsecured loans of Rs. 45,64,267/- treating it excessive or unreasonable.

2. The Appellant prays that the disallowance of Rs. 17,11,600/- made out of Interest Expenses be deleted.

3. The appellant craves leave to add, alter and/or to amend any of the grounds stated.

2. Brief facts of the case are that the appellant is an individual carrying on the business in a proprietorship firm. The appellant had taken Unsecured Loans in the proprietorship firm only from his relatives and also paid Interest @24% totaling Rs. 45,64,267/- during the year under consideration. The appellant had not paid Interest on unsecured loans to any other parties apart from the relatives. During the course of assessment proceedings, an amount of Rs.17,11,600/- was disallowed out of total Interest expenses of Rs.45,64,267/- to the tune of 9% treating it excessive and unreasonable having regard to the fair market value for which the payments have been made under the head interest & allowed interest expenses to the extent of 15% only considering the identical facts in immediately two preceding years. In the first appeal before Hon. CIT(A), disallowance was confirmed by Ld. CIT(A) by considering the First Appellate order for immediately 2 preceding years, i.e. A.Y. 2013-14 & 2012-13 in which the disallowance was confirmed. 

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