Disallowance of interest expenditure is warranted if assessee has not made any new investment during the year

Last updated: 22 February 2021

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This Income Tax Appellate Tribunal ruling states that interest expenditure can be disallowed if the assessee has not made any new investments during the relevant financial year. The appeal, initially delayed due to COVID-19 restrictions, was condoned by the tribunal before proceeding to the merits of the case.

Court :
ITAT Kolkata

Brief :
The present appeal has been preferred by the assessee against the order dated 27.02.2020 of the Commissioner of Income-tax (Appeals)-20, Kolkata [hereinafter referred to as ‘CIT(A)’].

Citation :
ITA No.534/Kol/2020

IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH “SMC” KOLKATA
Before Shri SANJAY GARG, Judicial Member

ITA No.534/Kol/2020
Assessment Year:2012-13

M/s Merino Exports Pvt.
Ltd. 5, Alexandra Court,
60/1 Chowringhee Road,
Kolkata-700 0201
[PAN No.AABCM 5670 N]
Appellant

V/s.

Dy. Commissioner of
Income Tax, Circle12(1), Aayakar
Bhawan, P-7,
Chowringhee Square,
Kolkata-69
Respondent

By Appellant Shri Shayam Sundar Jha, C.A
By Respondent Shri Jayanta Khanra, JCIT-SR-DR
Date of Hearing 08-02-2021
Date of Pronouncement 08-02-2021

O R D E R

The present appeal has been preferred by the assessee against the order dated 27.02.2020 of the Commissioner of Income-tax (Appeals)-20, Kolkata [hereinafter referred to as ‘CIT(A)’].

2. The present appeal is barred by limitation period of 171 days’. A separate application for condonation of delay has been filed by the assessee explaining that due to restrictions imposed because of Covid-19 pandemic, the assessee could not file the appeal in time. In view of the reasons explained and considering the circumstances in the pandemic situation of Covid-19, I condone the delay in filing the present appeal. Case is now taken up for adjudication on merits.

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