Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 362 - ITAT DELHIDisallowance of interest - Held that:- The interest was paid by the assessee on the amount borrowed for the purposes of business so it was to be allowed u/s 36(1)(iii) of the Act and once it is established that the interest paid was for the business consideration than the deduction has to be allowed to the assessee while computing the income u/s 28 of the Act and no disallowance can be made merely on this basis that interest free advance had been given by the assessee. Moreover, the advance given in the present case was for purchase of Plant & Machinery and the partners were having interest free capital in the credit of their account. Thus the disallowance made by the AO and sustained by the Ld. CIT(A) was not justified. Accordingly the same is deleted. - Decided in favour of assessee. Disallowance of expenditure - Held that:- In the present case it is noticed that the AO pointed out some discrepancies in the vouchers maintained by the assessee for various expenses and the explanation given by the assessee was not found to be plausible, therefore, the assessee itself agreed for addition of ₹ 1,00,000/- out of various expenses. In the present case since the assessee agreed for the addition, we, therefore, do not see any valid ground to interfere with the findings given by the ld. CIT(A) on this issue. Accordingly we do not see any merit in this ground of the assessee’s appeal. - Decided against assessee.
|