TMI Blog2019 (9) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee that the assessee had interest free funds. CIT(A) decided the case against the assessee based on its own personal opinion without any material available on record thus the finding rendered by the CIT(A) is perverse. This perverse finding affirmed by the Tribunal was without any material placed before it to come to a conclusion that the role played by the assessee's husband as a miller is virtually insignificant. Decisions have to be taken based on the return of income filed by the assessee and the documents that may be called for by the Assessing Officer. There is no room for the authority to incorporate their personal opinion while completing the assessment, which precisely was done by the CIT(A) and therefore, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right in holding that the appellant is not entitled for deduction of interest having regard to the principles of commercial expediency? and 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the appellant is not entitled for deduction of interest having regard to application of principles of attribution when there exists mixed funds? 3. We have heard Mr.N.Devanathan, learned counsel for the appellant/assessee and Mr.S.Rajesh, learned Standing Counsel for the respondent/Revenue. 4. The short issue, which falls for consideration in the instant case is, as to whether the assessee is not entitled for deduction of interest on the ground that she ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at her husband has given his property as a collateral security to the assessee for availing cash credit facility from the bank, the CIT(A) has stated that the collateral security given by her husband is of much lesser value than the money advanced by the assessee to her husband. 7. Aggrieved by the order dated 08.04.2005 passed by the CIT(A), the assessee preferred an appeal before the Tribunal contending that assessee by using all the manufacturing facilities established by her husband, derived commercial advantage in the shape of timely delivery of processed dhall, high quality processing and discount on processing charges as compared to market prize and that the assessee's husband offered his own property valued more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing of dhall. 9. We do not find any material, which was referred by the CIT(A), to come to a conclusion that manufacturing of dhall does not require heavy work and technical skill. Unfortunately, the CIT(A) and the Tribunal lost sight of the legal submission made by the assessee. In the case of CIT Vs. Kandagiri Spinning Mills Ltd. [reported in (2008) 298 ITR 306], a Division Bench of this Court held that amounts given by the assessee to its sister concern from the profits earned by it during the relevant assessment years and not by diverting the funds borrowed from the financial institutions and banks, interest paid on borrowed capital cannot be disallowed more so as the amounts were advanced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the role played by the assessee's husband as a miller is virtually insignificant. Decisions have to be taken based on the return of income filed by the assessee and the documents that may be called for by the Assessing Officer. There is no room for the authority to incorporate their personal opinion while completing the assessment, which precisely was done by the CIT(A) and therefore, has to necessarily held to be perverse and unsustainable. In fact, the assessee's husband stood as a guarantor to the assessee for obtaining cash credit facility was not disbelieved. The CIT(A) rejects it by stating that the value of the property was not equal to that of the amount borrowed. This is not the concern of the CIT(A), it is for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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