TMI Blog1978 (2) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Corporation in the asst. yrs. 1970-71, 1971-72 and 1972-73. These were claimed as allowable deductions and were also allowed by the ITO. Subsequently, it came to the notice of the ITO that the loan from the Life Insurance Corporation was raised by partner Shri G.S. Rastogi. The ITO was, therefore, of the view that it was partner Rastogi who had borrowed funds from Life Insurance Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals. The learned Departmental Representative submitted before us that the loan from the Life Insurance Corporation was taken by Shri Rastogi, that he had advanced the money to assessee and, therefore, the interest required to be disallowed under s. 40(b) of the Act. The counsel for the assessee, on the other hand submitted before us that the assessee had treated the Life Insurance Corporation as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso directly paid by the assessee to the Life Insurance Corporation. These facts, in our opinion, go to show that the name of Shri Rastogi was used only as conduit pipe for diverting the amount from Life Insurance Corporation to the assessee. This was not a case where Shri Rastogi himself had advanced the amount to the assessee or it could be said that any interest was paid to him. That being the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
