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2011 (9) TMI 601 - HC - Income TaxInterest bearing borrowals over and above business requirement - AO restircted claim to 50% - Asseesee replied - Securing Dealership, investment in shares and credits extended to trade debtors were incidental to the assessee's business, debit balance due to business loss - Held That:- Order of Tribunal based on the cash flow statement and the balance sheet, cannot be taken as materials for proving the claim of the assessee. CIT(A) worked out the non business advances / investments at Rs.13,56,937/-, Rs.18,29,174/- and Rs.18,94,723/ there was no materials to establish the nexus of the advances given by the assessee. Further trade credits could not be seen as other than business liabilities, and were not free-funds in the sense in which the assessee could use it freely. Appeal of revenue allowed.
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