Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 858 - HC - Income TaxDisallowance of interest - ITAT deleted the addition - Held that:- Revenue was unable to point out any mistake in the reasoning of the CIT which was approved by the learned Tribunal. Whether the payment of interest was allowable is basically a question of fact or at any rate a mixed question of law and fact. The learned Tribunal has for appropriate reasons upheld the views expressed by the CIT (Appeal) as A.O. himself has computed the interest income under the head “Business Income” and has disallowed the claim of interest payment of ₹ 7,43,926/-. If there is a temporary lull in the business activities, it does not mean that the appellant has closed its business and even if the A.O’s contention is acepted that the interest income was assessable as income from other sources, the interest payment would be allowable as deduction u/s. 57 of the Act and other expenses debited in P&L A/c would be allowable as business loss. In that situation also, there would be no effect on the total income.- Decided against revenue. Deemed dividend u/s 2(22)(e) - Tribunal deleted addition - Held that:- As assessee did not dispute that the Karta is a member of the HUF which has taken the loan from the Company and, therefore, the case is squarely within the provisions of section 2(22)(e) of the Income Tax Act. - Decided in favour of revenue.
|