TMI Blog2017 (1) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... come from the said property has been offered as business income, there is no reason to disallow the interest paid for acquiring the said property which was held by the assessee as current asset in its Balance Sheet and income from which has been offered as business income. Accordingly, we do not find any merit in disallowance of interest so made.- Decided in favour of assessee Addition of sundry debtors - addition on advance payment received from National Laminates Corporation - Held that:- Ledger account of this party reveals a fact that throughout the year there is a purchase and sale of goods and receipt of advance and at the end of the financial year there was a closing balance of ₹ 34,15,666. We also find that the Balance Shee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving as under: 4.3 I have considered the finding of the Assessing Officer and rival submission o fthe appellant, carefully. I find that Ld. Assessing Officer has made this addition of ₹ 34,15,666 merely for want of details or evidences without issuing any specific speaking showcause notice. Contrary to the presumption of the Assessing Officer, appellant is successful in demonstrating with evidence that an amount of ₹ 34,15,666 represents advance received from its customer namely M/s. National Laminates Corporation. The ledger account of this party reveals the fact that throughout the year there is purchase and sale of goods and receipt of advances and at the end of financial year there is closing balance of ₹ 34,50,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of interest by observing that it was not for the purpose of business. Against this order of the learned CIT(A), both, the assessee and the Revenue are in further appeal before us. 5. We find that the disallowance of interest was made by the Assessing Officer on the plea that borrowed fund was utilised for non business purpose. We find that the company has paid interest on cash credit facilities from the bank which was sanctioned by the bank for working capital requirement of the business. Assessee has also paid interest to Standard Chartered Bank on the loan borrowed for the purchase of property at Jaipur. We find that the assessee has started real estate development business and treated the Jaipur property as current asset in the B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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