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2021 (4) TMI 854 - AT - Income TaxDisallowance of interest expenses - Addition on account of interest on term loan - HELD THAT:- We find that the revenue authorities are not disputing that assessee has obtained the term loan from the bank. That the interest has also been paid to the bank. The view of the authorities below is that assessee did not need to take the term loan for paying its creditors. We find that it is also settled law that revenue authorities cannot step into the shoes of businessman and decide how the business should be conducted. Why the assessee is not charging from debtors and why it is using the money obtained from bank loan to pay the creditor is a businessman discretion and Assessing Officer cannot decide this aspect. Without any finding that assessee has actually not taken the loan and not paid interest on the loan or that assessee had diverted interest-bearing funds such addition lack cogency. In this view of the matter in our considered opinion the addition is not sustainable. Hence, the same is directed to be deleted. Disallowance on estimated basis out of travelling and telephone expenses - HELD THAT:- We find that the same has been done without bringing on record cogent material. Just writing that personal expenses cannot be ruled out the same cannot be ipso facto a ground for disallowance of expenditure. In this view of the matter in our considered opinion the addition made by the revenue authorities in this regard is not sustainable. Hence we direct that the same should be deleted. Appeal by the assessee stands allowed.
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