9911796707
TMI Blog2014 (4) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal has rightly held that Rs.97.26 lakhs interest free advance were made whereas the assessee had interest free fund to the tune of Rs.95.80 lakhs available with it, only for the remaining sum of Rs.1.46 lakhs, it had confirmed the disallowance of the interest - there is no reason to interfere in the reasonings in absence of any perversity - in absence of any fresh borrowings in A.Y. 2003-2004, reduction of borrowed funds could not be assumed to be for non-business purpose with corresponding advances to the partners in wake of appreciation of entire gamut of facts and details presented before the Revenue authorities – Decided against revenue. - Tax Appeal No. 756 of 2013, Tax Appeal No. 757 of 2013 - - - Dated:- 23-1-2014 - Akil Kuar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrowed were utilised for purposes other than business. It further noted that the assessee had advanced money to close relaives/ sister concerns without charging the interest. Accordingly, the Assessing Officer disallowed the expenditure. 6. When challenged before the CIT(Appeals), it concluded that the borrowed funds were not used for the business purposes in the year 2003-2004 and the Assessing Officer was justified in disallowing the expenditure on such borrowed funds to the extent it is claimed in the P L account. 7. Aggrieved department carried the same before the Tribunal which deleted the entire amount except Rs.21,900/-, i.e. 15% of Rs.1.46 lakhs and hence these appeals. 8. We could notice from the detailed examination co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made available to the partners, tribunal has rightly held that Rs.97.26 lakhs interest free advance were made whereas the assessee had interest free fund to the tune of Rs.95.80 lakhs available with it and therefore, only for the remaining sum of Rs.1.46 lakhs, it had confirmed the disallowance of the interest. 12. On both the aspects, based on the materials available when the tribunal has appropriately held in favour of the assessee, noting the availability of interest free funds, as also with regard to utilisation of funds available with the assessee, for the business purpose, we do no see any reason to interfere in the reasonings in absence of any perversity. In absence of any fresh borrowings in A.Y. 2003-2004, reduction of borrowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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