9911796707
TMI Blog2002 (10) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT(A) has further erred in deleting the addition of Rs. 31,700 made on account of low household withdrawals. 2. In regard to first ground, Assessing Officer noted that the assessee deposited a sum of Rs. 6.60 lakhs with M/s. Geeta Treads Ltd. (for short GTL), without interest. Loan was taken in earlier year, on which the assessee was paying interest. Therefore, Assessing Officer disallowed interest to the extent of Rs. 46,408, observing that the money has not been used for business purposes. Learned CIT(A) accepted the contention that loan was not raised during the year under consideration and since no nexus between borrowing and lending was proved, Assessing Officer was not right in making addition of Rs. 46,408 and he accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by submitting copy of account of the parties from whom funds are borrowed to prove that they all are old. Learned DR, in rejoinder, submitted that the decision in the case of H.R. Sugar Factory Pvt. Ltd. is subsequent to the decision of Ram Chand Hari Chand ( supra ). If there is some other decision of the High Court, which is subsequent to the Allahabad High Court decision, that decision should be followed. The assessee has also not proved that interest-free loans were diverted for advancing loan to GTL. 2.3 We have considered the rival submissions, perused the orders of tax authorities and gone through the material on record as well as the case law cited above. We find that the decision in the case of H.R. Sugar Factory Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted the impugned addition. We have gone through the decisions in the cases of Ram Chand Hari Chand and Shree Krishna Salt Industries ( supra ) and find that the case of the assessee is duly covered by the said decisions. Accordingly, we reject this ground of the Revenue. 3. The only other ground relates to deletion or addition of Rs. 31,700 made on account of low household withdrawals. Learned CIT(A) observed as under : ". . . The addition is made by observing that withdrawals of Rs. 29,300 towards household expenses were inadequate, looking to the standard of living of the appellant and the household expenses were, therefore, estimated at Rs. 60,000. In this regard, it was stated that there was no basis for making the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
