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2016 (6) TMI 521 - AT - Income TaxDisallowance of deduction for interest paid by the assessee on its borrowing from HDFC Bank - advancing money for purchase of property - nexus with business - Held that:- The objects in the Memorandum of Association are clearly in favour of the impugned transaction and establish a direct nexus between the business of the assessee and the advancing of money. Our view is also fortified with the financials of the assessee in as much as in the Balance Sheet under the Head “Stock-in- trade” there is a balance of ₹ 880,083,323/- which includes building of ₹8,38,915,200/-. These figures are exhibited being Balance Sheet and its schedules for the year ending 31.03.2002. These factual datas clearly show that assessee is very much in business in the real estate and showing the same as stock-in-trade in its Balance sheet. Even in its Profit and Loss account, the assessee has shown ₹ 63,46,92,800/- as sale of building & forfeiture receipts. Our aforementioned factual observations clearly show that the revenue authorities have grossly erred in not accepting assessee’s contention that is one of the businesses is in real estate. The Tribunal in the first round of litigation has directed the assessee to establish direct nexus between the advancing of money to SSKI and its commercial expediency. In our understanding of the fact, as mentioned elsewhere, the assessee has successfully discharged its onus and has complied with the directions of the Tribunal. We set aside the findings of the ld. CIT(A) and direct the A.O. to delete the additions - Decided in favour of assessee
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