Section 37 of Income Tax Act, 1961— In the instant case, AO in the assessment order passed u/s 143(3) of the Act disallowed the deduction of interest of Rs. 5,04,843/- u/s 57(iii) of the Act on the ground that the assessee failed to establish that the expenditure was incurred for earning interest income.

Held that— The assessee challenged the said action of the AO restricting the claim of deduction on account of interest expenditure to the interest income. However, the ld. CIT(A) while passing the order dated 19-12-2017 for the Assessment Year 2013-14 has confirmed the action of the AO. Accordingly, in view of the facts and circumstances of the case, the claim of interest expenditure of the assessee to the interest income of Rs. 3.57 lacs is allowed. Thus the appeal of the assessee is partly allowed.[SHRI ALBENDRA SINGH VERSUS THE ITO WARD- 3 (5) JAIPUR] [2019] 18 ITCD Online (15) [ITAT JAIPUR]