1978 (1) TMI 95

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....ay,1976, are disposed of together for the sake of convenience. 2. The only ground in appeal of the Revenue relates to the interest of Rs. 15,563 added to the total income of the assessee by the ITO and deleted by the AAC. 3. The ITO had added Rs. 16,368 under s. 40A of the ITA, 1961, by disallowing interest at 9 Per cent on Rs. 2,50,000 out of the loans taken by the assessee as he held the v....

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....equired for the purpose of the business and, therefore, the ITO was justified in working out interest on the extra sums and disallowing it as not wholly and exclusively laid out for the purpose of the business of the assessee. The assessee opposed these contentions and submitted that it is not for the Revenue to tell the assessee how his business should be run because it is the assessee's exclusiv....

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....nked any particular borrowing that were not required for the purpose of the business and, therefore, neither in law nor on facts there is a case for the addition of Rs. 15,563 and the AAC was fully justified in deleting it. We do not find any justification to interfere in his order at the instance of the Revenue whose appeal is dismissed. 6. As regards the cross objection the only surviving gro....