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Shri Hemant G. Bohra

2. The only effective issue raised by the assessee is with regard to the claim of deduction for interest payment on loan taken from LIC which was claimed otherwise than by way of filing of valid revised return of income.

3. We have heard rival submissions. We find that the return of income for the A.Y.2011-12 was filed belatedly by the assessee on 31/03/2012 declaring total income of Rs.24,54,111/-. The assessee later revised this return of income by declaring total income of Rs.3,57,659/- after claiming deduction for interest paid on loan taken from LIC in the sum of Rs.20,96,542/-, which was further given as loan to M/s. Hindustan Inox Ltd., from where interest of Rs.24,33,729/- was earned by the assessee. In other words, the assessee sought to claim this interest paid on loan taken from LIC as deduction under the head 'other sources' against the interest income earned on loan given to M/s. Hindustan Inox Ltd., which was offered by the assessee under the head 'income from other sources' in the original return of income. The ld. AO, however, disregarded this claim of the assessee as the original return of income was filed belatedly; and accordingly the same cannot be revised by the assessee. We further observed that since the claim of deduction for interest paid on loan taken from LIC in the sum of Rs.20,96,542/- was made by way of invalid revised return, the same cannot be entertained. This action of the ld. AO was upheld by the ld. CIT(A).

4. Aggrieved, the assessee is in appeal before us.

5. We have heard rival submissions. We find that it is not in dispute that the assessee had borrowed loan from LIC and had advanced the same to M/s. Hindustan Inox Ltd. It is not in dispute that on the loan given to Hindustan Inox Ltd, the assessee had derived interest income of Rs.24,33,729/- which was offered to tax under the head 'income from other sources'. It is not in dispute that assessee had indeed paid interest Shri Hemant G. Bohra on loan taken from LIC in the sum of Rs.20,96,542/-. This interest is otherwise squarely allowable as deduction u/s.57(iii) of the Act under the head 'income from other sources'. Merely because the assessee could not claim the same by way of a valid revised return, the same was sought to be disallowed by the lower authorities by placing reliance on the decision of Hon'ble Supreme Court in the case of Goetze India Limited reported in 284 ITR 323. We find that the Hon'ble Jurisdictional High Court in the case of CIT vs. Pruthvi Brokers & Shareholders reported in 349 ITR 336 had decided this issue in favour of the assessee. The facts before the Hon'ble Jurisdictional High Court which is as under:-