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2008 (12) TMI 325 - KERALA HIGH COURTInterest on borrowed capital - whether the Tribunal was justified in sustaining the order of the Commissioner of Income-tax (Appeals) deleting disallowance of interest claimed by the firm amounting to Rs. 3,94,385. - Assessing Officer noticed that one of the partners has made interest-free withdrawal of around Rs. 21 lakhs during the previous year and on account of personal withdrawal by one of the partners, the firm was short of liquidity leading to higher incidence of debt and consequently interest liability. – Firm claiming that out of borrowings from firm partner acquiring land in his personal name but for business of firm - but the assessee did not produce any details about utilisation of advances retained by the partner for the purchase of property for the business purpose of the firm. - We are unable to uphold the order of the Tribunal confirming that of the Commissioner of Income-tax (Appeals). - we feel one more opportunity should be given to the assessee-firm to prove the case with facts and details
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