TMI Blog2014 (9) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... were never utilized for the purpose of business - The funds were lying idle in an almirah - It is not case of assessee that the funds were "Cash in hand", as per the balance-sheet - the funds was not shown as "cash in hand" - No special circumstances were mentioned for not utilizing the funds for business purpose – there is no reason to interfere in the order of the Tribunal – Decided against ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Commissioner of Income Tax (A) dated 8.10.2004 in Appeal No. 612/03/04 on the ground that the assessee failed to bring on record the material to draw inference with regard to cash flow statements when no such plea was taken or raised or pressed on behalf of the Department before Assessing Officer or in the appeal itself and the appellant had no opportunity to file the relevant account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. The position of cash lying in the almirah was as under:- Assessment Year Amount 2000-01 ₹ 49,72,716.00/- 2001-02 ₹ 53,50,000.00/- 2002-03 ₹ 54,93,366.00/- The A.O. disallowed the payment of interest and made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on such borrowings cannot be allowed as a deduction under section 36(1) (iii) of the Income-tax Act, 1961. To support his arguments, he relied on the ratio laid down in the following cases :- (I) S.A. Builders Ltd. Vs. C.I.T.(A) [2007] 288 ITR 0001; (II) C.I.T. Vs. Gautam Motors [2011] 334 ITR 0326; and (III) C.I.T. and another Vs. Radico Khaitan Ltd. [2005] 274 ITR 354. Lastl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were lying idle in an almirah. It is not case of assessee that the funds were Cash in hand , as per the balance-sheet. In other words, the funds was not shown as cash in hand . No special circumstances were mentioned for not utilizing the funds for business purpose. When it is so, then we find no reason to interfere with the impugned order passed by the Tribunal. The same is hereby sustained al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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