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2014 (2) TMI 1334 - AT - Income TaxNon charging of interest from debtors - Held that:- No part of the paper book has been pointed out to us how the interest free funds available were advanced to these persons - since nothing has been brought on record by the assessee or by the CIT(A) with regard to the purpose for which the various persons to whom money has been advanced has actually used the money. The advances given mostly are to the persons in their personal capacity and in the absence of any material or cogent explanation on record, the same have to be treated to have been advanced for personal benefit of such persons - thus this ground of revenue is allowed. Disallowance u/s 40A(3) made for payment in cash for purchase of property - Held that:- In the proviso to section 40A(3) the exceptions are prescribed under Rule 6DD of the having regard to the nature and extent of banking facilities available for consideration of business expediency and other relevant factors and nothing beyond that - Ld. CIT(A) has not taken the said proviso in the right spirit and has deleted the addition, which is against the facts of the case and against the provisions of law - thus the order of the CIT(A) is reversed - appeal of Revenue is allowed.
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