ASSISTANT COMMISSIONER OF INCOME TAX Vs. SANJEEV AGGARWAL
LAWS(IT)-2014-5-35
INCOME TAX APPELLATE TRIBUNAL
Decided on May 09,2014

ASSISTANT COMMISSIONER OF INCOME TAX Appellant
VERSUS
SANJEEV AGGARWAL Respondents

JUDGEMENT

A.T.VARKEY,JM. - (1.) THIS is an appeal preferred by the revenue against the order of the ld CIT(A), XXX, New Delhi dated 29.04.2011 for the Assessment Year 2006 -07.
(2.) THE grounds of appeal preferred by the revenue are as follows: - "(i). Allowing the assessee to be entitled to claim of interest expenses of Rs. 52,48,337/ - u/s 57(iii) of the IT Act, 1961 ignoring the fact that the assessee has sought to derive double benefit by claiming exemption u/s 54EC in respect of capital gains income and by simultaneously claiming deduction u/s 57(iii) in respect of the interest paid on loan which was taken to invest in 54EC bonds. (ii) not considering the fact that the purpose of the loan was not to make an interest - bearing investment rather was per assessee's own certification, the loan was taken to purchase capital gain tax saving bonds to avail of the exemption u/s 54EC and hence the allowability of deduction from income earned from other sources is against the provisions of the Income Tax Act, 1961."
(3.) APROPOS the ground of the appeal are that the claim of interest expenses of Rs. 52,48,337/ - u/s 57(iii) in the light of the assessee's claim of exemption u/s 54EC of the Income -tax Act, 1961 (herein after 'the Act'). Brief facts of the case are as follows. The assessee is an individual, assessed to tax vide PAN AAHPA2017J. The assessee filed his return declaring total income on 31.07.2006 of Rs. 4,69,45,610/ -. During the year under reference, the assessee earned income from salaries and income from other sources. The assessment was completed vide order dated 19.12.2008 u/s 143(3), at an income of Rs.;


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