2003 (1) TMI 650 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Ahmedabad ruled in favor of the appellant, directing the deletion of an addition of Rs. 45,000 made by the Assessing Officer for "interest not charged on advance given to M/s. Krishna Traders for non-business purposes." The decision was based on commercial considerations, and as the interest income did not accrue or was received by the assessee, no tax could be levied on it. The appeal was allowed.