TMI Blog2000 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmation of disallowance out of interest expenditure of Rs. 14,868. The learned counsel stated that interest-free loan of Rs. 50,000 was given to Shri Balkishan, husband of the assessee. The AO observed that the assessee is paying interest of Rs. 42,830 and has not utilised the funds borrowed on interest for business purposes to the extent of interest-free loan of Rs. 50,000 given to her husban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowances should be deleted. 3. The learned Departmental Representative supported the order of the Dy. CIT(A) and relied upon the judgment of Hon'ble Calcutta High Court in the case of Tirupati Trading Co. vs. CIT (2000) 158 CTR (Cal) 167 and CIT vs. Vaikundam Rubber Co. Ltd. (2000) 158 CTR (Ker) 455: (2000) 241 TTR 50 (Ker). 4. We have carefully considered the submissions made by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest expenditure is, therefore, not correct and justified. The facts of the judgments relied upon by the learned Departmental Representative are clearly distinguishable. It those cases, there was a direct nexus between the borrowed money and the amount invested without charging interest. No such direct or indirect nexus is established on the facts of the present case. We are, therefore, of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartmental authorities, we are of the view that such petty disallowances made by the AO and confirmed by the Dy. CIT(A) are reasonable and justified. We do not find any justification to interfere with the view taken by the Dy. CIT(A). 7. The next ground relates to confirmation of disallowance of Rs. 725 out of ESI. The assessee debited Rs. 2,314 on account of ESI expenses in the P L a/c which, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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