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2013 (5) TMI 193 - AT - Income TaxInterest u/s 36(1) disallowed - As per the AO The investment in the partnership did not yield any benefit to the assessee, nor any commercial expediency stood explained by him. – The partnership firm was in any case a different taxable entity, having its own income, so that the investment therein could not be regarded as the assessee's business, so as to qualify for deduction u/s.36(1)(iii). - Held that - as such, the inference of the assessee as having utilized the borrowed capital for non business purposes, as made by the A.O., is misconceived and incorrect on facts. That being the case, no case for disallowance of any interest, under the facts and circumstances of the given case, is made out. - In favour of assessee.
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