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2020 (8) TMI 755 - AT - Income TaxDisallowance of interest - loan was used for the purpose of horse-trading and horse racing business - HELD THAT:- Claim of the assessee was declined on the basis of this fact that the assessee did not earn any income from horse trading activity. It is not a sufficient reason to reject the claim of the assessee. It is not an always necessary to earn the profit from the said business or any other business. The assessee took loan for the said business so the interest disallowance is not justifiable. It is not in dispute that the loan was taken for horse trading activity on which the interest was claimed. Anyhow, the finding of the CIT(A) rejecting the claim of the assessee on the basis of non-receipt of profit is not liable to be sustainable, therefore, we set aside the finding of the CIT(A) and allowed the claim of the assessee.
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