9911796707
TMI Blog2012 (10) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... L Kr. SHRAWAT, JUDICIAL MEMBER : This is an appeal filed by the Assessee arising from the order CIT(A)-V, Baroda dated 5.10.2009 and the only ground raised before us is as follows:- 1. On the facts and circumstances of the case as well as in law, the lrd. CIT(A)-V, Baroda, was erred in not declaring(sic.) deleting addition of interest of ₹ 4,12,600/- and also erred in directing the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of interest. The AO has concluded that it could be presumed that the assessee has advanced interest-free loans out of the interest-bearing funds. For this legal proposition, reliance was also placed on few decisions. Finally, a proportionate interest @12% amounting to ₹ 4,12,600/- was added. Being aggrieved, the matter was carried before the first appellate authority. 3. Before ld.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... school building and business income from maintenance of the hostel and the administrative building. The appellant is not in the finance business. It could not be shown that the interest free advances were for the business purpose of the appellant. The argument of the appellant that the interest free advances have assisted the educational trust to tide over the financial difficulties and in turn ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bearing funds. The appellant is directed to provide all the details to the AO in this regard and the AO would accordingly, recomputed the disallowance. Ground No.2 is partly allowed subject to verification by AO. 4. Ld.AR Mr. Manish J.Shah has drawn our attention on the figures of the interest-free funds available with the assessee. Ld.AR has informed that as on 31.3.2005 the partner's cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 251(1) with effect from 01/06/2001 through which the power of set aside had been withdrawn. We are in agreement with the arguments of the ld.AR and considering the totality of the facts and circumstances of the case, reverse the findings of the ld.CIT(A) and direct to delete the addition. Ground is allowed. 5. In the result, the appeal of the Assessee is allowed. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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