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2020 (3) TMI 1220 - AT - Income TaxAddition of interest expenses - addition made on the basis that the assessee has filed only a written explanation but has not provided the evidences proving nexus between the expenditure incurred and the interest free fund available - HELD THAT:- As perused the materials available on record and gone through the orders of the authorities below. The assessee has demonstrated that the assessee had made investment in fixed assets namely Oil Mill Machinery of ₹ 34,35,045/- and Oil Mill Building of ₹ 20,95,190/- totaling to ₹ 55,30,235/- during the year. The Assessee has submitted during the Assessment Proceedings that funds which were invested in fixed assets were out of funds available in the capital account. It is also stated that the loan which was taken by the assessee was utilized for the purpose of business. In support of this contention the assessee has drawn my contention to the inventory, sundry debtors, cash and bank, loans and advances. Hence, it is stated that the entire amount of loan of ₹ 21,21,57,670/- was utilized for the purpose of business of the assessee. This fact is not rebutted by the revenue, therefore, assessing officer is hereby directed to delete the addition. - Decided in favour of assessee.
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