2017 (7) TMI 1359

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..... - RAJASTHAN HIGH COURT] wherein it has been held as if a person borrows money for business purpose but utilises that money to earn interest, however temporarily, the interest so generated will be his income. This income can be utilised by the assessee whichever way he likes. He may or may not discharge his liability to pay interest with this income. Merely because it was utilised to repay the .....

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..... UDGMENT 1. By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the tribunal has partly allowed the appeal of the assessee. 2. The counsel for the appellant has framed the following substantial question of law. (i) Whether in the facts and circumstances of the case and in law the ITAT was justified in deleting addition of ₹ 9885010/- m .....

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..... to be his income. The interest earned by the assessee could have been used for many other purposes. If the assessee purchased a house or distributed dividend or paid salary of its employees with the money received as interest, will the interest amount be treated as not his income ? This is not a case of diversion of income by overriding title. The assessee was entirely at liberty to deal with the .....

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