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TMI Blog2013 (8) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ness. In our opinion, Assessing Officer cannot force the assessee to earn interest income or save interest expenses for running the business. The Assessing Officer was unable to demonstrate that interest bearing loans were used by the assessee other than business purpose - Following decision of S.A. Builders Ltd. Vs. CIT [2006 (12) TMI 82 - SUPREME COURT] - Decided against Revenue. - I.T.A. No.1409/Del/2010 - - - Dated:- 15-7-2011 - SHRI RAJPAL YADAV AND SHRI K.G. BANSAL, JJ. For the Appellant: Ms. Y. Kakkar, Sr. DR For the Respondent: Shri R.S. Singhvi, CA ORDER PER RAJPAL YADAV:JM: The revenue is in appeal before us against the order of CIT(A) dated 13.01.2010 passed for assessment year 2004- 05. The solitary subst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. On appeal, learned CIT(A) deleted the disallowance. The findings recorded by the learned CIT(A) in this connection is worth to note which read as under:- 10) Now, we shall analyse whether the provisions of section 36(1)(iii) can be invoked in the assessee s case. The learned Assessing Officer, in the impugned order, was of the opinion that if the assessee had not made investments in mutual funds units and given interest free advances to the sister concerns, it would not have had the necessity to borrow funds and pay interest thereon. The important issue herein is whether /the assessee had surplus cash, over and above the loan taken for investments in mutual funds units and interest free advances to the sister concerns. Analysing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce can be made. The stand of the Assessing Officer is that assessee should have used its own fund instead of interest bearing borrowings for running the business. In our opinion, Assessing Officer cannot force the assessee to earn interest income or save interest expenses for running the business. The Assessing Officer was unable to demonstrate that interest bearing loans were used by the assessee other than business purpose. Learned First Appellate Authority has appreciated the facts and circumstances in right perspective and we do not see any reason to interfere in his order. Hence, this appeal of the revenue is dismissed. 5. In result, appeal of the revenue is dismissed. This order was pronounced in the open court on 15.07.2011. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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