Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 594 - AT - Income TaxDisallowance of Interest because the money borrowed is being used in the non-business purpose – Held that:- The nature of business shown by the assessee is transfer of parcels and cash from one place to another. If for certain unavoidable circumstances like delay in transportation on account of cancellation of trains or other problems not in the control of the assessee, the assessee was not able to make delivery of the cash then cash lying with it, is utilized for delivery back and to fulfill its commitment. The assessee is himself to judge about the requirement of cash in his line of his business. Even otherwise cash balance is fully covered by partners’ capital and, therefore, there is no reason to disallow a part of interest payment - Assessee discharges the onus then for making disallowances it is for the AO to produce evidence to show that money borrowed was utilized for nonbusiness purposes - There is no material on record to show that money borrowed was utilized for non-business purposes the disallowance of interest cannot be upheld – Decided against the Revenue.
|