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TMI Blog2016 (11) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... aid interest and forwarded the same for non-business consideration therefore the interest from the said amount cannot be allowed as business expenditure u/s 37 of the Act being for non-business consideration, in the absence of any explanation or evidences by the assessee in support of his claim. - Decided against assessee - DB Income Tax Appeal No. 81/2006, DB Income Tax Appeal No. 83/2006 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the fact that the tribunal while considering the paragraph 15, 16 19 observed that the interest which is paid is not admissible and held as under:- 15. We have heard the rival submissions and perused the materials available on record. As argued by the ld. DR that due to acute financial stringencies, the assessee had to borrow money from the banks and the market and substantial had to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any explanation or evidences by the assessee in support of his claim. The AO has charged the interest @ 18% p.a for seven months i.e. till the firm was closed/converted into a Private Limited Company, which is on higher side. Therefore, the AO is directed to disallow the interest @ 12% p.a. for seven months on ₹ 17,55,874/- on product basis being the interest not for the purpose of busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier's M/s Ashok Ley Land Finance Ltd. and one of the trailer was released after 4 to 5 months which was not in working conditions and heavy expenditure had to be incurred to make it moveable on road and the second trailer was not released and was sold off by the Financer after about 2 years. The necessary repossession Memo (PB 70- 73) and the above facts were available before the AO has been a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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