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TMI Blog2015 (4) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount. The position would have been different if the money had been paid from a current account or a savings account. Money was admittedly paid from the cash credit account and admittedly interest was also paid. Therefore, it was the obligation of the assessee to offer one to one explanation to establish that the money borrowed from United Bank of India was not spent for the purpose of purchasing the shares. Since the assessee did not discharge his obligation, the Assessing Officer had refused to allow the deduction. Without applying mind, the learned Tribunal upheld the contention of the assessee. We, therefore, propose to remand the matter to the Assessing Officer. - Decided in favour of the revenue. - ITA No. 108 of 2007 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the revenue has not brought on record any concrete evidence to prove the direct nexus between such borrowed funds being utilised for interest free investments, we are of the considered opinion that no part of such interest can be disallowed U/s. 14A read with Section 36(I)(iii) of the I.T.Act. Therefore, we set aside the order of the CIT(A) and direct the AO to delete the addition. How does the interest paid or incurred by the assessee for earning exempt income become an expenditure allowable under section 36 of the Income Tax Act has not been explained by the learned Tribunal nor has Mr. Bagaria, learned Advocate for the assessee tried to make any improvement thereupon. Therefore, the finding given by the learned Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A of the Act. The aforesaid order of the Commissioner of Income Tax was challenged before the learned Tribunal and the learned Tribunal set aside that order. Aggrieved by the order of the learned Tribunal, the revenue had come up before us. We had set aside the order passed by the learned Tribunal and upheld the order of the Commissioner of Income Tax passed under Section 263 of the Income Tax Act. Ms. Gutgutia drew our attention to the following findings recorded by us in the aforesaid judgment. The assessee did not maintain any separate accounts for the purpose of the exempt income. The assessee did not give one to one co-relation between the funds available and the funds deployed. It was, therefore, not possible to follow with any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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