Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 344 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) - disallowance of interest on the capital work in progress, on the interest free advances given for capital purpose and interest on investments - HELD THAT:- From the details, it can be found that the interest bearing funds have been utilized for the business purpose only as per the terms of the loan. Nothing contra has been brought on record to prove the fact that the interest bearing funds shown above have been utilized for non business purpose by the Revenue. Since the assessee has been found to be having sufficient own funds and the loan funds have been utilized for the business purpose, keeping in view the established legal position as narrated we decline to interfere in the order of the Ld. CIT(A) on the issue of disallowance u/s 36(1)(iii). Disallowance u/s 14A r.w.r. 8D - HELD THAT:- we hold that in the peculiar facts and circumstances of the case, wherein the assessee has received no exempt income, no disallowance can be made u/s 14A, in view of the position of law as considered by the various Courts. Hence, we find no reason to interfere in the order of the Ld. CIT(A) which is rightly based on the judicial pronouncements. - Decided against revenue
|