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2011 (1) TMI 737 - HC - Income TaxDeduction - Interests on loan borrowed - Business expenditure or not - the assessee is dealing in shares - The department declined to allow the business expenditure and interest on the ground that the assessee has shown in the balance sheet the shares as an investment and not as stock-in-trade - looking into the volume, frequency and regularity of the transactions, it is clear that the assessee was in the business of sale and purchase of shares in each month apart from the family shares held by the assessee - As earlier, the department has, accepted the said case of the assessee -The Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997 -TMI - 5601 - SUPREME Court) has held that the principles of accountancy do not over-ride the provisions of the Income-tax Laws - Whether the assessee is carrying on a business or not is to be ascertained from the material placed before the Assessing Officer and not by a mere entry in the balance sheet - Therefore, the finding of the Tribunal is based on legal evidence and does not suffer from any legal infirmity which calls for interference.
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