TMI Blog2013 (5) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and circumstances of the given case, is made out. - In favour of assessee. - ITA No. : 2720/Mum/2011 - - - Dated:- 13-2-2013 - Shri Sanjay Arora, A.M. And Shri Vijay Pal Rao, J. M.,JJ. For the Appellant : Dr. Manjunath Karkihalli For the Respondent : Shri M. P. Makhija Shri S. M. Makhija ORDER Per Sanjay Arora, A.M.: This is an Appeal by the Revenue arising out of the Order by the Commissioner of Income Tax (Appeals)-II, Thane ('CIT(A)' for short) dated 22.11.2010, allowing the assessee's appeal contesting its assessment for the assessment year (A.Y.) 2007-08 u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) vide order dated 30.12.2009. 2. The only issue arising in appeal is the maintainability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the prospect of earning profit in future, for which in fact the investment had been made, could not be overlooked. Further, the assessee had sufficient funds in his capital account, which reflects a balance of Rs.478.88 lakhs at the year-end, so that in fact the impugned investment was sourced out of the assessee's own capital, and not by borrowed funds, as inferred by the A.O. The disallowance was, accordingly, deleted. 3. Aggrieved, the Revenue is in appeal. 4. We have heard the parties, and perused the material on record. 4.1. No doubt, an investment may not yield immediate profits or even profits in the short term. What has, therefore, to be seen is the purpose for which the investment has been made and, of course, from the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pearing in the said balance-sheet is for Rs.8.50 lakhs. There is nothing to indicate of any interest having been incurred thereon. Even where so, there can again be no presumption of the same having financed, to that extent, the impugned investment; the said balance sheet also reflecting other business investments, viz. the assessee's proprietorship businesses, as, Prathmesh Constructions and Trimurti Constructions, among others. As such, the inference of the assessee as having utilized the borrowed capital for non business purposes, as made by the A.O., is misconceived and incorrect on facts. That being the case, no case for disallowance of any interest, under the facts and circumstances of the given case, is made out. We decide accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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