9911796707
TMI Blog2015 (8) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... ederation is necessary business expenditure. The necessity / requirement of incurring this expenditure is explained. - Decided against revenue Disallowance of interest paid to federation - Held that:- CIT(A) gave a finding that the assessee has taken loan from Govt. of India and UP Government, for the purpose of business, and that this is evident from the sanctioned letters and hence the interest in question is allowable u/s 36(1). As the interest in question is payable to Govt. Of India and the statement of UP Government, section 43(B)(d) does not apply. - Decided against revenue Disallowance of additional income on the ground that it is in the nature of penalty - Held that:- CIT(A) has rightly held that the expenditure in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Appeals) has erred in law in deleting the disallowance of ₹ 16,29,918/- towards subscription of UP, Co-operative Sugar Factories Federation Ltd. ignoring the fact that the assesee failed to prove the services provided by the federation for business purposes and the deduction was admissible under section 37 to the IT Act,1961. 2. Whether in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) has erred in law in deleting the disallowance of additional interest of ₹ 3,07,922/- paid to the Sugar Development Fund (Govt. Of India) 1991 ignoring the fact that the same was in the nature of penalty. 3. Whether in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... federation. The AO disallowed the amount on the ground that the payment of interest is outside the purview of business of the assessee. Ld. CIT(A) gave a finding that the assessee has taken loan from Govt. of India and UP Government, for the purpose of business, and that this is evident from the sanctioned letters and hence the interest in question is allowable u/s 36(1). We have seen reason to interfere in this finding of the first appellate authority . The revenue has raised a legal argument that, the interest in question cannot be allowed, as it is hit by the provisions of section 43B(d) of the Act. 7. Section 43B(d) of the Act reads as follows :- d) any sum payable by the assessee as interest on any loan or borrowing from any pub ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
