9911796707
TMI Blog1980 (5) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest had been paid on moneys borrowed from these two parties by the assessee for investment in share. According to the ITO though the assessee had claimed deduction of this interest of Rs. 20,557 + Rs.12,440 = Rs. 32,997 the same was not allowable as there was no income chargeable this year under the head "other sources". According to the ITO in terms of s. 57(iii) a deduction could be allowed for expenditure only when there was income chargeable under the head "other sources". Since there was no dividend income from the shares in question the ITO refused to consider the assessee's claim for deduction of the interest. The assessee appealed. 3. The AAC found the ITO's reasoning and conclusion to be correct. He observed: "He has correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of the Patna High Court (32 ITR 377). Shri Aggarwal also invited attention to the copy of the account of the assessee with M/s A. Kumar Co. (Bombay Branch) wherein the interest paid as well as the commission credits were duly recorded for this year. Shri Aggarwal also filed copies of the assessee's balance sheets as on31st March, 1973showing on the liabilities side the loans payable to A. Kumar Co. and Surender Kumar Jindal and on the assets side the 400 shares of United Dyechem Industries Pvt. Ltd. held as the assessee's investment. Shri A.K. Ghatak, appearing for the Revenue supported the action of the authorities below. He submitted that no doubt the reasoning of the authorities below was not quite in line with the ruling of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... add that we do not find much merit in the alternative plea for the Revenue to the effect that the case must go back for investigation into facts. As rightly stressed by Shri Aggarwal, there is no whisper of any doubt raised on the cardinal factual points relevant. There is also the fact that the assessee keeps books of account and the balance sheets are available. It is true, no doubt that the loans were borrowed in the period November 1969 to September 1970 and the investments had also taken place in that period. The loans borrowed were Rs. 2,50,000 in all as per the details furnished at page 1 of the paper-book and the total investments in the 400 shares were Rs. 2,84,000 as per the details given at page 2 of the paper-book. (Shri Aggarw ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
