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2011 (4) TMI 861 - HC - Income Tax
Interest disallowance - income from trading in share, interest and commission - Held that:- It is for the assessee to show the source of acquisition of those shares by production of materials that those were acquired from the funds available in the hands of the assessee at the relevant point of time without taking benefit of any loan. If those shares were purchased from the amount taken in loan, even for instance, five or ten years ago, it is for the assessee to show by the production of documentary evidence that such loaned amount had already been paid back and for the relevant Assessment Year, no interest is payable by the assessee for acquiring those old shares.
In the absence of any such materials placed by the assessee, the assessing authority took a most reasonable approach in assessment - proportionate amount should be disallowed having regard to the total income and the income from the exempt source - Decided against the assessee