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2018 (2) TMI 1459 - ITAT JAIPURDisallowance of excess claim of remuneration to the partners claimed - nature of income - interest on FDR - Held that:- There is not dispute that the business of the assessee dealing in food grains, oil seeds and pulses etc is a seasonal business depending upon crop seasons. Therefore, during the non harvesting season the assessee is not having much business activity and accordingly the funds which are otherwise required for the business activity has to be kept in the bank. Further, it is also not disputed by the AO that some of the FDRs were taken by the assessee to avail overdraft facility from the Bank for the purpose of business activity during the pick season of crops. Thus, the funds which could not be utilized during the slack season and therefore was not immediately needed were kept in bank deposits including FDR - the interest on the FDR has direct nexus with the business activity of the assessee. As relying on case of CIT vs. Lok Holding [2008 (1) TMI 365 - BOMBAY HIGH COURT] CIT-A as not erred deleting the disallowance - Decided against revenue
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