9911796707
TMI Blog2010 (12) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... ted against the order dated 14-03-2005 passed by CIT(A), Valsad holding concurrent jurisdiction of CIT(A)-IV, Rajkot for the assessment year 2001-02. 2. The following effective grounds are raised in the appeal: 2. The learned assessing officer has erred in law and on facts in making an addition of Rs.13,220/- on account of notional interest on interest free advance of Rs.1,10,143/- to Shri Atulkum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts order dated 03-07-2008 in ITA No.3674/Ahd/2003. The observations of the Tribunal are as follows: 2. In respect of Ground No.1, we have heard the rival submissions. We find that no disallowance in respect of interest was made in the case of the assessee by the AO in the earlier year in which loans and advances were given by the assessee. The case of the assessee, in our opinion, is duly covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the amounts which were the subject- matter of previous years' assessments. This is an admitted fact that these loans / advances were nto made by the assessee during the year. No contrary decision was brought to our knowledge by the learned DR. We, therefore, delete the disallowance of Rs.54,812. Thus, this ground stands allowed. There being no change in the facts and circumstances on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ahmedabad was not found acceptable to the Tribunal and the disallowance was deleted vide order number and date cited above. The observations of the Tribunal in this regard are as follows: 3. In respect of Ground No.2, we have carefully considered the rival submissions. We have also gone through the order of the tax authorities. We find that in this case the assessee has allowed interest @18% to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee may be in need of the money for the purpose of business, it does not mean that the assessee may pay the interest only at such rate of interest at which he has already taken the money from some other parties earlier./ In our opinion, no thumb rule can be laid down that the interest will be paid by the assessee at a particular rate of interest. Under the facts and circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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