9911796707
TMI Blog1999 (4) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... le under the head 'Business' ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the order of the Commissioner of Income-tax (Appeals) that interest received on loan to Kedarnath Mohanlal would be assessable under the head 'Business' ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the finding of the Commissioner of Income-tax (Appeals) that depreciation on the flat 'Rajhans' and the maintenance expenditure for the name would be deductible as business expenditure ?" The assessee has constructed a factory shed and started an oil mill. As he suffered heavy losses, he closed the oil mill and even sold the machinery installed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s advanced loan to various persons/parties, therefore, the Tribunal has treated this interest as income from the business. No names of the parties have been given but only on the claim of the assessee, the Tribunal has accepted the fact that the assessee has advanced loan to various parties. But if we read carefully again the assessment order itself, the facts are very clear that the assessee has claimed interest of Rs. 19,500 receivable from Kedar Nath Mohanlal. Nowhere has the assessee claimed before the Assessing Officer that the interest of Rs. 19,500 is receivable from various parties. Thus the finding of the Tribunal is perverse and when the amount is advanced only to one party in the earlier years, the sole instance of advance of mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessee that for allowing the depreciation the registration of the flat is not necessary but at the same time the assessee has to prove that he owned that flat and no categorical finding is there to this effect. Therefore, we do not agree with the authorities below to allow the depreciation to the assessee on this flat which admittedly stands in the name of the director. The facts are not properly enquired into at any stage by the authorities below. Therefore, we answer question No. 3 so far as the maintenance allowance is concerned in the affirmative, that is, in favour of the assessee and against the Revenue, but so far as the dispute relating to depreciation allowance is concerned, we set aside the order of the Tribunal and send ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
