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TMI Blog2016 (11) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances, the disallowance of interest is deleted - Decided in favour of assessee. - ITA No. 63 of 2009 - - - Dated:- 25-7-2016 - Girish Chandra Gupta And Arindam Sinha, JJ. For the Revenue : Mr.P.Dhudhoria,Advocate For the Assessee : Mr.R.K.Murarka,Advocate Mrs.Nilanjana Pal,Advocate ORDER The Court : This appeal is directed against the judgement and order dated 28th March, 2008 by which the learned Income Tax Appellate Tribunal, D Bench, Kolkata allowed an appeal being ITA No.1818/Kol/2007 preferred by the Assessee and dismissed an appeal being ITA No.2105/Kol/2007 preferred by the Revenue both pertaining to the assessment year 2004-05. The aggrieved revenue has come up in appeal. The following questions were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 43B. Therefore, it will be seen that there is no violation of the provisions contained in Section 43B. 12(2)(b) The provisions of section 43B runs as under : 43B. Notwithstanding anything contained in any othe rp[rovision of this Act, a deduction otherwise allowable under this act in respect of (a)..(b) (c) (d) (e) any sum payable by an assessee as interest on any loan or advances from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan or advances, Or (f) shall be allowed irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him only in computing the income referred to in se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g increase in the amount of loan. But this is an automatic process and it does not require any authorization or volition from the constituent. Even if there is no consent in writing, interest will continue to be debited in an overdraft account. It is correct that the appellant paid more than the interest charged. As such the question is not merely whether the interest of an overdraft account remained outstanding as on 31.03.2004 or not but whether such interest was converted into loan or advance. Still, more important issue for consideration is to examine whether the entire deposits or part thereof made into the overdraft account was towards the payment of interest and repayment of principal or not or whether such deposits were towards day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A) while deleting the above addition remains uncontroverted before us, we do not see any reason to interfere with the order of learned CIT(A) and reject the contention. The first question raised by the Revenue is answered in the negative and against the revenue. The assessing officer disallowed interest amounting to ₹ 49,31,602/- due to the following reasons : (20) Thus on the facts and in the circumstances of the case it is quite apparent that no capital fund was available for making invest in Long Term and Short Term assets. Therefore, it has to be inferred that the entire Investment in Long Term Investment and in Short Term Investment has essentially come from his loan fund. Therefore, interest attributable to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither the appellant nor the AO is in a position to exactly quantify the total amount of funds used in acquisition of shares and scrips during the previous year either from the borrowed fund or from the circulating capital of the business, while the assessee continues to assert that all transactions relating to investments and trading (all credits and debits) passed through a common lodger account and from a mixed fund i.e. common HDFC (settlement) bank account and hence must not be bifurcated for the purpose of 14A cannot be accepted in view of his argument which he added as an alternative argument in case other expenses while considering the cases relied which are found to have been rendered on different factual contexts. Accordingly, si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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