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TMI Blog2015 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ; "Whether on the facts and in the circumstances of the case, the Incometax Appellate Tribunal has substantially erred in law in confirming the allowance of interest of Rs. 4,22,557/- ?" 3. The brief facts of the present case are that the assessee company was incorporated a private limited company and main object is to carry on business as organizer and developers of land, estate cooperative housing society and to deal with and improve property either as a owner or as an agent. During the accounting period relevant for A.Y. 1991-92 the assessee has continued the work as per agreement with Payal Co-operative Housing Society Ltd. for the development of land b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plain why this amount should not be disallowed as same was not a business expenditure. The assessee company has filed its reply by letter dated 10.2.1994 and 18.2.1994 and submitted that the same are made in the assessment proceeding for A.Y. 1990-91. As mentioned in the assessment order for A.Y. 190- 91, the assessee company has used the amount of bank loan and other loan for the purpose of making advances to Payal Co-Op. Housing Society Ltd. and other associated concern. The payment was made for land purchase for society towards land documents and reimbursement of expenses of its sister concern. As per clause 11 of the agreement dated 12.8.1988, the assessee company was to recover the cost of the scheme from the prospective members/purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; "I have considered the submissions made on behalf of the appellant. The issues for consideration are whether the expenditure was incurred for the business purposes. Secondly, whether it was a totally business proposition with an intention to earn profit. It is observed that as per the terms of the contract, the appellant was required to arrange finances for the business and therefore, the advance of loan by the appellant was in accordance with the provisions of the contract. Looking to the over all profit received by the appellant in the form of compensation, it is obvious that net result of the total project was a profit, however small, and it cannot be alleged that the appellant incurred losses to give an ultimate benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed alongwith the paper-book. The Ld. DR however, supported the order passed by the Assessing Officer. 4. Having heard both the sides, I find that identical fact is involved in all the appeals. The assessee had taken loan form the bank and paid to Payal Co-op. Housing Soc. Ltd. for purchase of land. This arrangement was made pursuant to the agreement entered into between the assessee and the society. According to the terms of the agreement, the assessee was supposed to arrange finance for the scheme. Similar fact has been found in the case of M/s. S.N. Builders Pvt. Ltd. where the Tribunal upheld the finding recorded by the Ld. CIT(A). C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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