TMI Blog2014 (9) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... this disallowance is not justified. The A.O. has not invoked the provisions of Section 36(i)(iii) of the Act. Notional interest cannot be charged as has been done in this case. There is no allegation of diversion of funds. It is also noticed that the assessee has also raised interest free loans. This, not being a case of diversion of funds, we cannot interfere in the impugned finding. The deletio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest thereon and has also charged interest from some others. Brief facts of this ground are that the assessee, as individual, derived income from interest on loans and advances, from fixed deposits and security deposits, from interest and share of profit from a partnership firm in which he is a partner, amongst others. For A.Y. 2009-10, he filed his return of income (ROI) on 17.11.2009 decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with other connected issues. The revenue is now aggrieved and ahs filed this appeal by raising the impugned ground. 2.2 We have heard rival submissions and have carefully perused the relevant facts and evidence available on record. We have also considered the written submissions, etc produced on record. The case of ld. D.R. is that on one hand the assessee is charging interest on his capital in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not u/s 37 of the Act. He has argued that the A.O. has even tried to charge interest on the opening balance which is contrary to available precedents. He argued that in A.Ys. 2006-07, 2007-08 and 2008-09 the A.O. disallowed same proportionate interest and those were deleted by ld. CIT(A) but the department did not file second appeal. He argued that the case of the A.O. is not of diversion of borro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o raised interest free loans. This, not being a case of diversion of funds, we cannot interfere in the impugned finding. The deletion made by ld. CIT(A) is quite justified. Therefore, we confirmed the finding of ld. CIT(A) and dismiss this appeal. 3. In the result, this appeal of the revenue is dismissed. Order Pronounced in the Court on 18th September, 2014. - - TaxTMI - TMITax - Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
