2001 (8) TMI 980 - AT - Income Tax

Summary

The Appellate Tribunal ITAT Gauhati dismissed the appeal filed by the revenue against the order of the DCIT(A) deleting the disallowance of Rs. 21,000 made by the Assessing Officer on interest expenditure. The Tribunal found no nexus between the capital borrowed and interest-free advances, allowing all interest paid by the assessee as deduction. The tax effect was less than Rs. 25,000, and the Revenue should have refrained from filing the second appeal as per CBDT circular. The appeal was dismissed.