9911796707
TMI Blog2007 (8) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose, is correct - Tribunal is legal justified in confirming the disallowance of interest - 32 of 1999 - - - Dated:- 29-8-2007 - PRAKASH KRISHNA AND BHARATI SAPRU JJ. Pawan Shree Agrawal for the appellant. A. N. Mahajan for the respondent. JUDGMENT 1. This is an appeal under section 260A of Income Tax Act at the instance of assessee for the Assessment Year 1989-90. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of interest at Rs.87,064?" 2. Heard Shri Pawan Shree Agrawal, learned counsel for the assessee and Shri A.N. Mahajan, learned standing counsel for the department. The learned counsel for the assessee submits that it is not a case of diversion of fund by the assessee company. But the assessee had the sufficient fund to purchase the agricultural land for a sum of Rs.4,83,687. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position in favour of admissibility of interest. However, in subsequent para 9 without making discussion the Commissioner of Income Tax (Appeals) observes that the additional funds were raised with object in view to reduce the extra financial burden of the company, there is no case of making the disallowance of interest in the period relevant to assessment year 1989-90. The said finding has been r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gineering Works Pvt. Ltd. (2006) 285 ITR 554 (All). The said decision is distinguishable on facts. In that case a finding was recorded that the assessee had sufficient fund of amount towards share capital, surplus and reserve as also interest free advance from the two customers. There is no such finding in the case on hand. Therefore, the said decision does not help the appellant in any manner. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
