Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 766 - HC - Income TaxDisallowance of interest - whether alleged advances made by Appellant was in the course of and for the purpose of business especially when Appellant had adequate non-interest bearing funds during the relevant assessment years? - Held that:- From the material placed on record, it is not in dispute that the assessee advanced money to the ladies out of interest bearing funds. The case of the assessee is that those ladies were expected to enter into an agreement to purchase the land properties for the benefit of it. In fact that has been done, but no material is placed on record to show that the ladies entered into an agreement to purchase the lands as mentioned in the letter which they have given in those circumstances. The case of the assessee is not established and once the amounts were advanced to these ladies not in the course of business, the assessee was not entitled to claim any deduction of interest paid on the amount borrowed. That is precisely what the Tribunal has held and what the authorities have upheld. - Decided in favour of revenue.
|