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Judgment
PER AMITABH SHUKLA, AM,
This appeal by the assessee is directed against the order of Ld. Commissioner of Income Tax(Appeals)- 25, New Delhi [hereinafter referred to as ‘ld. CIT(A)] dated 25.09.2025 arising out of assessment order dated 30.03.2024 passed under section 153C of the Income Tax Act, 1961, for the Assessment Year 2016-17. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
The only issue contested by the assessee to the present appeal is an addition of Rs.2,16,061/- under section 69A of the Act made by the ld. AO and its confirmation by the ld. CIT(A).
Having heard the rival parties in the light of material available on records, we have noted that the short point raised by the ld. Counsel for the assessee is that the ld. AO has proceeded to make disallowance of an expenditure of Rs.2,16,061/- under section 69A, which was never claimed by the assessee in its return of income. The ld. Counsel has provided a paper book so as to allude that no such claim was made. The ld. Counsel has submitted that it did not pay the interest amount of Rs.2,16,061/- to Diwakar Commercial Pvt. Ltd. and that the amount paid to the party was on account of repayment of outstanding opening balance. The ld. Counsel has further alluded making reference to profit & loss account to show that no interest expense of the amount of Rs.2,16,061/- was debited therein.
Upon consideration of the various details and submissions filed by the appellant assessee, we are of the considered view that no case of any addition on account of interest expense of Rs.2,16,061/- is made out in respect of the assessee. Accordingly, the order of the lower authorities is set-aside and the ld. AO is directed to delete the impugned disallowance of interest expense of Rs.2,16,061/-.
In the result, the appeal of the assessee is allowed.