TMI Blog2018 (11) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of the assessee’s appeal. Disallowance of interest - Held that:- Paper book shows that the entire borrowed funds were utilised by the assessee for personal purposes and there is nothing to show that such borrowed funds were utilised even partly for the purpose of business of trading in shares. Even the learned counsel for the assessee has not raised any material contention in support of the assessee’s case on this issue and has only contended that disallowance was made by the assessee suo moto in the computation of income on account of interest. In this regard, it is observed that the Ld. CIT(A) has already allowed a relief to the assessee on this issue to the extent of ₹ 53,910/- by observing that there was a double disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso noted that there was no closing stock of shares. The assessee had claimed interest expenditure of ₹ 9,40,188/- under the head profits and gains from business or profession . In this regard, the A.O. found that the entire borrowed funds were utilised by the assessee for personal purpose. He accordingly disallowed the entire claim of the assessee for interest expenditure. Accordingly, the income of the assessee for the year under consideration was determined by the A.O. at ₹ 9,04,621/- in the assessment completed under section 143(3) vide an order dated 27.11.2007. On appeal, the Ld. CIT(A) upheld the order of the A.O. substantially. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee of having carried on such business merely on the ground that the quantum of transaction was not sufficient. He has also contended that the assessee had carried on the similar business even in the earlier years and the same was accepted by the A.O. A perusal of the order passed by the A.O. also shows that the income of the assessee was computed under the head profits and gains of business or profession by the A.O. himself which fully supports the claim of the assessee that the business of trading in shares was carried on by him during the year under consideration. I, therefore, accept the contention of the learned counsel for the assessee that the business of trading in shares was carried on by the assessee during the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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