TMI Blog2010 (4) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... cer on account of disallowance of interest, without considering the fact that the interest bearing funds were not utilized for the purpose of business. 2. At the time of hearing before us, it was pointed out by the learned counsel that this issue is squarely covered in favour of the assessee by decision of the ITAT in assessee s own case for Assessment Years 2000- 01 to 2005-06. Copy of the order is placed before us. The learned DR on the other hand relied upon the order of the authorities below. We have heard both the parties and perused the material placed before us. We find that the Assessing Officer has disallowed the interest mainly on the ground that the assessee was keeping substantial cash in hand. On the similar facts the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative could not dispute the finding of Learned Commissioner of Income Tax(Appeals) that the assessee s nature of business required it to possess cash balance of sufficient amount of all the material time as the making of timely payment was the essence of business transaction of the assessee. We find that it is not the case of the revenue that the borrowed funds were utilised by the assessee for any other purposes than its business. The assessee may be imprudent in holding large amount of cash but when the cash was possessed for business purposes it would constitute business asset of the assessee and the borrowings connected therewith had to be held as for business purposes. We therefore, do not find any error in the order of the Learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the bank pass-books and the acknowledgement and computation of income of the creditors. Before the Ld. Commissioner of Income Tax(Appeals) only evidence relating to the agricultural income of the creditors was produced. However, all the creditors are assessed to income tax and in the confirmation their Permanent Account Number was duly mentioned, moreover in the computation of income the agricultural income disclosed by them was duly mentioned. Therefore, so far assessee is concerned it has duly discharged the burden of proving the cash credit. 6. In support of this contention he has produced before us the copy of the letter dated 09-03-2007 alongwith which the confirmation and that details of the creditors were produced, before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter further. The Revenue did not examine the source of income of the said alleged creditors to find out whether they were creditworthy or were such who could advance the alleged loans. There was no effort made to pursue the so called alleged creditors. In those circumstances, the assessee could not do any thing further. In the premises, if the Tribunal came to the conclusion that the assessee has discharged the burden that lay on him, then it could not be said that such a conclusion was unreasonable or perverse or based on no evidence. 7. The ratio of above decision would be squarely applicable to the case of the assessee because in the assessee s case also the assessee has furnished the confirmation of the creditors alongwith their Per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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