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2013 (7) TMI 814 - HC - Income TaxDisallowance of interest - Diversion of interest bearing funds to sister concern company - Tribunal deleted disallowance - Held that:- share of sister concerns of the assessee were held in the name of partners and not in the name of the assessee firm, because the shares cannot be registered in the name of the firm. No portion of interest debited in profit and loss account relates to investment in shares and entire payment of interest was for business purposes. The Assessing Officer has not brought out any evidence to show that borrowed money was used by the assessee in share business - Following decision of CIT vs. Prem Heavy Engineering Works P. Ltd. [2005 (4) TMI 32 - ALLAHABAD High Court] - Decided against Revenue.
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