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2021 (3) TMI 431 - MADRAS HIGH COURTRevision u/s 264 - Disallowance of proportionate interest borne by the petitioner on the amount paid to Mrs.Thillaikarasi on the ground that the payment made to Mrs.Thillaikarasi was not connected with the business of the petitioner and therefore was not a business expenditure - HELD THAT:- As evident that the petitioner had borrowed capital from the bank and paid amounts the said Mrs.Thillaikarasi contrary to the memorandum and articles of association of the petitioner company. The amount that was paid to Mrs.Thillaikarasi was not a business expenditure. Therefore, the interest paid thereon out of the borrowed capital also cannot be allowed to be written off as business expenditure. Therefore I do not find any merits in the present writ petition. The first respondent Principal Commissioner of Income Tax has rightly rejected the Application filed under 264 of the Income Tax Act, 1961 vide the imugned order. The scope of revision under 264 of the Income Tax Act, 1961 is limited and therefore cannot be interfered. Scope of revision under section 264 of the Income Tax Act, 1961 cannot be abused as a substitute to get over an order of assessment passed second respondent without filing an appeal. Nothing to stopped the petitioner from filing a statutory appeal in time before the Commissioner of Income Tax (Appeals). No merits in the present writ petition.
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