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2019 (1) TMI 392 - AT - Income TaxDisallowing interest claim u/s 36(1)(iii) - unsecured loan was not used for business purpose - Held that:- Assessee’s balance-sheet as on 31.03.2009 statement of unsecured loan, treading and profit and loss account as well as balance-sheet as on 31.03.2008 of proprietorship business concern M/s TTD Industries, the very documents as on 31.03.2009 for the said concern, general ledger account from 01.04.2009 to 31.03.2010 and audited accounts as on 31.03.2010 stand perused. As come on record that assessee had shown cash amount in his bank to the tune of ₹2,02,10,038/- as against investment of ₹18,90,654/- only meaning thereby that the assessee’s non-interest bearing fund exceed non-business investments. The said investments have been made/accepted in assessment year 2008-09 as against in the impugned assessment year. All these clinching aspects have gone unrebutted during the course of hearing. We quote hon'ble Bombay high court’s landmark decision in CIT vs. Reliance Utilities & Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT) to conclude that necessary presumption in such case is that of investment from non-interest bearing funds only. - Decided in favour of assessee.
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