1982 (9) TMI 182

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..... me others. The firm's accounts with the Bank of Maharashtra, both at Bombay and Pune were overdrawn as at the beginning of the year. During the first year under consideration, there were deposits and withdrawals, in consequence of which the Bombay account was left with a nominal overdraft whereas the Pune account was carried forward with a credit balance. During the accounting period, the assessee .....

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..... . Rashida for personal use. On an appeal by the assessee before the CIT(A), the CIT(A) has allowed the appeal on the ground that the partner Nazaralli's account showed adequate credit balances and he was entitled to withdraw the money from his account for his personal use. 2. On an appeal by the Revenue against the order of the CIT(A), the ld. departmental representative has analysed the facts of .....

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..... ing it to Smt. Rashida, daughter of partner Shri Nazaralli, for purchase of a flat. This is not for the purpose of the business of the assessee-firm. In our opinion, the ITO was fully justified in disallowing the claim for interest to the extent of advance made to Smt. Rashida for non-business purposes out of the monies with-drawn from the Bank. The ITO's order requires to be reinstated. The order .....

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