Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1275 - AT - Income TaxDisallowance of interest u/s.36(1)(iii) - CIT-A deleted the addition as interest bearing funds were used for non-business purposes - Held that:- The finding of CIT(A) that the assessee had sufficient non-interest bearing funds available with it for partners withdrawals, was not controverted by the DR by bringing any cogent and positive material on record. Further, the finding of CIT(A) that the payment of interest was commercially expeditent was examined by the AO in the current and prior years. Therefore, the contentions of AO for diversion of interest bearing borrowed funds to the partners of the sister concern of the assessee cannot be sustained, was also not controverted by the DR by bringing any cogent and positive materials on record. Hence, we do not find any good and justifiable reason to interfere with the order of CIT(A) - Decided against revenue
|