TMI Blog2007 (8) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... verted any borrowed fund on which interest was paid for non-commercial purposes and therefore, there is no question of disallowance of interest out of the interest paid by the assessee – order of CIT & ITAT is justified - 176 of 1999 - - - Dated:- 13-8-2007 - R. K. AGRAWAL and VIKRAM NATH JJ. JUDGMENT 1. The present appeal filed under section 260A of the Income-tax Act, 1961 (hereinaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent-assessee has claimed deduction on payment of interest, on the loan taken by it at Rs. 52,46,521. It had not charged interest on the sundry debtors even though it was paying interest. The assessing authority computed a notional interest at Rs. 22,11,906 on the amount of loan advances by the assessee to other persons. After deducting interest of Rs. 8,02,795 the assessing authority added/dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consonance with the decision of this court in the case of CIT v. Radico Khaitan Ltd. [2005] 274 ITR 354 and of the apex court in the case of S. A. Builders Ltd. v. CIT (Appeals) [2007] 288 ITR 1. That being the position the substantial question of law referred to above is answered in favour of theassessee and against the Revenue and consequently the appeal fails and is dismissed. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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