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2010 (10) TMI 407 - AT - Income TaxDisallowance - Income from other sources vs Business income - It has been clearly noticed that the assessee borrowed funds from M/s Reliance Capital Limited and the same funds were invested in M/s Sreenath Enterprises. One to one nexus between the borrowed funds as invested in partnership firm was proved by the assessees - interest income of Rs.2.34 crores received from M/s Sreenath Enterprises, a firm in which the assessee is partner, is taxable under the head `Profits and gains of the business or profession’ and interest expenditure of Rs.1.82 crores is deductible u/s.36(1)(iii) - Although the provisions of section 14A cannot be invoked for the first time before the Tribunal, still on the facts and circumstances of the present case, no disallowance is called for u/s.14A on proportionate basis - the appeal is dismissed
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