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TMI Blog2013 (9) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... fully covered by partners’ capital and, therefore, there is no reason to disallow a part of interest payment - Assessee discharges the onus then for making disallowances it is for the AO to produce evidence to show that money borrowed was utilized for nonbusiness purposes - There is no material on record to show that money borrowed was utilized for non-business purposes the disallowance of interest cannot be upheld – Decided against the Revenue. - ITA No.573/Ahd/2009 along with CO. No.59/Ahd/2009 - - - Dated:- 30-6-2011 - Shri Bhavnesh Saini, JM And D. C. Agrawal, AM,JJ. For the Appellant : Shri S. S. Parida, CIT/DR For the Respondent : Shri P. M. Mehta, AR ORDER Per D. C. Agrawal, Accountant Member. In the appeal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing name of sender i.e. assessee firm, description of the parcel i.e. notes/cash and receiver s name i.e. assessee firm at Ahmedabad was found. During the course of search the statement of the employee of the assessee firm was recorded u/s 132(4). Shri Manibhai Nathudas Patel an employee categorically stated on 21/22.07.2004 that cash of Rs.15,00,000/- belonging to assessee as per cash book of Mumbai Branch was being sent from Mumbai to Ahmedabad. Even though the cash was found fully explained the AO chose to make the addition of this sum on the ground that Shri Manibhai Nathudas Patel could not give any explanation in respect of the cash seized and also that assessee firm could not give any evidence of transfer of cash. However, the ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The details of cash and jewellery found and seized are mentioned by the AO at page 2 of the assessment order. During the course of search cash belonged to the assessee amounting to Rs.26,25,000/-. This cash found was seized in para 5 of the assessment order, the AO stated that cash of Rs.25,00,000/- found wrapped in newspaper and kept in a bag and does not show names of sender or the received. Shri Prakash Ishverlal Patel was available at that time and his statements was recorded under section 131 of the Act on 21/22.07.2004. In this statement, he stated that cash belonged to the firm and was being transferred to Ahmedabad. The DDIT(Inv) Unit-II(3), Mumbai seized the amount for the reasons that since no satisfactory explanation with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when borrowed funds are used for non-business purposes. The assessee has shown to the Authorised Officers that cash balance is required to be kept in the line of his business. The nature of business shown by the assessee is transfer of parcels and cash from one place to another. If for certain unavoidable circumstances like delay in transportation on account of cancellation of trains or other problems not in the control of the assessee, the assessee was not able to make delivery of the cash then cash lying with it, is utilized for delivery back and to fulfill its commitment. The assessee is himself to judge about the requirement of cash in his line of his business. Even otherwise cash balance is fully covered by partners capital and, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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