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TMI Blog2015 (1) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed in the current years’ assessment – thus, the order of the Tribunal is set aside – Decided in favour of assessee. - TAX APPEAL NO. 230 of 2003 - - - Dated:- 19-11-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR JP SHAH, ADVOCATE FOR THE RESPONDENT : MR NITIN K MEHTA, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. By way of this appeal, the appellant-assessee has challenged the order dated 27.01.2003 passed in ITA No.1953/Ahd/1996 by the Income Tax Appellate Tribunal, Ahmedabad (for short the ITAT ). 2. The facts in brief are that the assessee is one of the Directors in Vadilal Industries Limited and Vadilal Chemical Limited. The assessee filed a return of income on 31.08.1993 for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the disallowance of interest of ₹ 3,81,924/from the total interest of ₹ 5,49,006/- paid by the asseessee. He further submitted that the Tribunal has not properly appreciated the fact that the appellant was maintaining one common account in which all his income was deposited and from which withdrawal for all the expenditure was done. 4.1. He has drawn our attention to the provisions of Section 57(iii) of the Income Tax Act, which reads as under: (iii) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income 4.2. In support of his contention, he relied upon the decision of the Karnataka High Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be different on the first day of the current accounting year from its nature and status as on the last day of the previous accounting year. Regarding the past years, the assessee s claims for deduction were allowed in respect of the sums advanced during those years; this could be only on the assumption that those advances were not out of borrowed funds of the assessee. This finding during the previous years is the very basis of the deductions permitted during the past years, whether a specific finding was recorded or not. A departure from that finding in respect of the said amounts advanced during the previous year would result in a contradictory finding; it will not be equitable to permit the Revenue to take a different stand now in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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