9911796707
TMI Blog2013 (11) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2008-09. The assessee is objecting the disallowance of interest of Rs. 9,61,379 paid to bank. The assessee is also objecting the confirmation of disallowance of Rs. 29,347 under section 14A read with rule 8D. The assessee had claimed deduction on account of interest of Rs.9,61,379. In response to the notice the assessee has stated that the assessee had borrowed the funds from banking channel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilised for the purpose of business. Accordingly, he disallowed the interest paid on loans taken from bank at Rs. 9,61,379. It was submitted before the Commissioner of Income-tax (Appeals) that out of total assets worth Rs. 1.91 crores the assessee had advanced loan about Rs. 1.12 crores to various people without charging any interest. These amounts were received and paid to family members with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax (Appeals) and the submission of the assessee, I found that the assessee deserves to succeed in this ground in part. I noted that the loan of Rs. 13.66 lakhs was utilised for margin deposit with stock brokers. Therefore, at the most disallowance on interest can be disallowed on the amount of Rs. 13.66 lakhs and not whole of the amount taken from the bank. The Department has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of Rs. 2,11,149/- and the assessee has claimed various expenses in its profit and loss account. The Assessing Officer was of the view that same expenses relating to exempt income, therefore, disallowance has to be made under section 14A read with rule 8D. Accordingly, he disallowed 0.5 per cent. of total expenses claimed which was equivalent to Rs. 29,347/-. Since the disallowance has been m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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