1979 (12) TMI 102

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..... a building for Rs. 1,70,000. There were some withdrawals in Rajnikant's account during the year and also in the earlier years. The firm had to borrow money from the market for carrying on its business also. The ITO concluded that the monies borrowed were diverted for the non-business activities of the partners. He, therefore, disallowed the claim of interest on the borrowed funds as not having bee .....

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..... ade. But the assessee's contention that the entire borrowings have been utilised for the purpose of business had not been adequately scrutinised. Some items were placed before us from which it would appear that the assessee had borrowed monies for the purpose of business but this would not be sufficient. We, therefore, set aside the orders of the authorities below and restore the matter to the fil .....

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