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TMI Blog2017 (1) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... st free funds to the tune of ₹ 5,29,93,800/out of which, the assessee had only utilized interest bearing funds in the investments in question amounting to ₹ 3,30,01,822/, the learned CIT(A) had rightly reduced the interest disallowance for the period between 27.02.2009 to 31.03.2009 at ₹ 3,47,197/. The aforesaid finding recorded by the learned CIT(A) has gone unrebutted as observed by the learned Tribunal. Thus it cannot be said that the learned Tribunal has committed any error in deleting interest expenditure - Decided in favour of assessee - TAX APPEAL NO. 905 of 2016 - - - Dated:- 12-1-2017 - MR. M.R. SHAH AND MR. B.N. KARIA, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE FOR THE OPPONENT : MR SN DIVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,828/- 2.2. Feeling aggrieved and dissatisfied with the order passed by the order passed by the Assessing Officer, the assessee preferred appeal before the CIT(A). The learned CIT(A) deleted the addition made by the Assessing Officer on account of interest income of ₹ 31,90,550/, Bad debt Writtenoff of ₹ 26,74,708/, Disallowance u/s 40(3) of ₹ 8,15,828/and reduced addition of interest expenditure not incurred for business purpose of ₹ 1,29,43,122/to ₹ 3,47,197/. 2.3. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A), the Revenue preferred appeal before the learned Tribunal. By impugned judgment and order, the learned Tribunal has dismissed the said appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f loan and advance. The same has been considered by the learned CIT(A) by observing that the appellant had earned interest of ₹ 1,09,43,092/from the financial services. Under the circumstances, it cannot be said that the finding recorded by the learned CIT(A) and the learned Tribunal that the assessee was in the regular business of money lending is either perverse or contrary to the evidence on record. If that be so, considering Section 36(2) of the Income Tax Act, learned CIT(A) as well as learned Tribunal have rightly deleted the addition made on behalf of Bad Debt Writtenoff of ₹ 26,74,708/. We are in complete agreement with the view taken by the learned CIT(A) confirmed by the learned Tribunal. Therefore, no substantial ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of ₹ 10.42 Crores because the appellant was charging interest on these advances. Further, the deposits given were for the purpose of securing lands etc. which were for the business purpose of the appellant. In view of the above, the Assessing Officer could not have been disallowed any interest on account of borrowed monies being invested in deposits and loans and advances. 8.2 As far as the investments are concerned it is seen that major part of the investments are in shares in fact the assessee has made investments of ₹ 7.07 Crores in purchase of shares of RJD Integrated Textile Park Ltd. Investments in shares cannot yield any income which is chargeable to tax. Hence, interest expenditure attributable borrowed funds util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /. 6.0. After considering the aforesaid observations made by the learned CIT(A) and having found that the assessee was already available at his disposal interest free funds to the tune of ₹ 5,29,93,800/out of which, the assessee had only utilized interest bearing funds in the investments in question amounting to ₹ 3,30,01,822/, the learned CIT(A) had rightly reduced the interest disallowance for the period between 27.02.2009 to 31.03.2009 at ₹ 3,47,197/. The aforesaid finding recorded by the learned CIT(A) has gone unrebutted as observed by the learned Tribunal. 7.0. In view of the aforesaid facts and circumstances of the case, it cannot be said that the learned Tribunal has committed any error in deleting interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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