9911796707
TMI Blog1981 (2) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee's returned wealth was justified on the ground that the assessee had earned interest to that extent. 2. The admitted facts of the case are as follows : The assessee held a fixed deposit receipt of Rs. 8,50,000 against which he had obtained an overdraft of Rs. 6,40,000 from the said bank. Out of it Rs. 3,50,000 were given on loan by him to one Shri P. N. Singh. He derived an incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee challenged the aforesaid order of the learned WTO before the AAC, who somehow felt that the order of the WTO was correct. She, therefore, dismissed the appeal by making, inter alia, the following observations : "The interest on this loan was claimed at Rs. 65,626 but the WTO concluded that the appellant was not entitled to claim deduction of interest for the balance amount of loan whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was stoutly supported. 6. After carefully examining the rival submissions, we have no hesitation in holding that the addition of Rs. 37,500 is not at all justified. There is no deeming provision under the Wealth-tax Act under which an addition made to the assessee's total income in the income-tax assessment by disallowing a certain expenditure could also be treated as deemed wealth of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause even while disallowing it under the Income-tax Act, 1961, the assumption made was not that interest was not paid to the bank but that such payment was not for the business purpose of the assessee and, therefore, could not be allowed as a deduction while computing the assessee's total income. Once payment of the interest is conceded to, it becomes an outgoing and does not get reflected in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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