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TMI Blog2013 (10) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... it - Both the CIT (Appeals) and the Tribunal appropriately dealt with the issue, then, no reason to interfere with the deletion made by the CIT (Appeals) and confirmed by the Tribunal – Decided against the Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit and loss account was worked out to be Rs.1,04,24,279/- and the proportionate interest was worked out to be Rs.74,54,390/-. Thus, the total claim of interest expenditure came to Rs.1,16,01,527/- (Rs.41,47,137/-+ Rs.74,54,390/-). 1.4 On bi-partite hearing, the Assessing Officer disallowed total claim of interest expenditure of Rs.1,16,01,527/-. Aggrieved by the same, the respondent-assessee approached the Commissioner of Income-tax (Appeals), which partly allowed the appeal of the assessee. It directed the Assessing Officer to disallow the deduction of interest expenditure to the tune of Rs.33,57,024/- and the balance addition of Rs.82,44,503/- was deleted. The CIT (Appeals) gave the following reasons for the same : "5. In the light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts i.e. of Shri Rajesh J. Desai and of M/s.Rajiv Enterprise, the appellant in majority of cases, has paid interest @12% on its borrowings. However, as regard to the interest receipt, the appellant has received interest @ 12% except in the case of M/s RJD Impex Pvt. Ltd. (Sister concern), wherein interest has been received @6%. The appellant is also paying net interest of Rs.32,72,252/- to the firms, wherein it is a partner. The details of which are as under : Tally of Partners Interest : Interest Payable 1. Hotel Rangoli Rs. 15,80,326/- 2. Raj Corporation Rs.23,02,997/- Rs.38,83,323/- Less : Interest Receivable (Partner) 1. Raj Enterprise Rs.4,07,126/- 2. Hotel Rajpath Rs. 1,52,600/- 3. Raj Developers Rs.51,345/- Rs.6,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larification so far as the interest charges to M/s.RJD Impex Pvt. Ltd. was concerned. However, as far as the other amount was concerned, it relied upon the finding of the CIT (Appeals) to hold that the interest at the rate of 12% in majority of the cases was received by the assessee and it also paid interest at the rate of 12% and since such facts were not controverted by the Revenue, it did not disturb the finding of the CIT (Appeals). 1.6 Aggrieved by such decision of the Tribunal, the present appeal is preferred under Section 260A of the Income-ttax Act, 1961 (hereinafter referred to as 'the Act') by the Revenue proposing the following substantial questions of law : "(A) Whether the ITAT erred in law in ignoring the vital fact that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been prepared, one in his personal name "Shri Rajesh J. Desai" and another in the name of proprietary firm "Rajiv Enterprises", which is engaged in the business of financing. The consolidated balancesheet as on March 31, 2007 had shown negative balance in the capital account. However, this balancesheet had negatived the advance loan to the extent of Rs.13,88,28,243/-. The categorical finding of the CIT (Appeals) has not been controverted by the Revenue that on every transaction entered into by the respondent-Assessee, he has charged the interest. The interest-free funds to the tune of Rs.6.5 crore were in the nature of advance receipt for the land and for all the borrowings, he has paid interest at the rate of 12% It is only in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er verification, the said direction is required to be flowed. 3.3 We are of the opinion that no error could be noticed in the approach of either of the authorities, much less any perversity which would warrant any interference at our end. 3.4 When it is evident from the record that the assessee carries on business of financing in the name of Rajiv Enterprises as a proprietary firm and when the assessee is in the business of financing, land dealing, hotel business, etc. and if it manages a different trading account for financing, to arrive at profit and loss in different businesses and eventually, a consolidated statement is prepared and when both the CIT (Appeals) and the Tribunal have concurrently held in favour of the assessee, where no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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