1984 (8) TMI 151

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....lending. 2. The admitted facts are as follows: The assessee is an individual earning income from the profession of an Income-tax Consultant. He was also carrying on business of money lending from the asst. yr. 1973-74 onwards. For the asst. yr. 1980-81 he claimed that there was a loss in the money lending business amounting to Rs. 17,753. The ITO was of the opinion that the assessee having dive....

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....terest paid on borrowed capital did not cease to be expenditure incurred for money lending business and could not, therefore, be disallowed. 3. The Revenue is in appeal to point out that because of the diversion of the money lending funds for the purchase of the house property, there should be an inference that the assessee has ceased to carry on the money lending business. But, we are unable t....

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....uting the assessee's total income. His order on this point is, therefore, confirmed. 4. For the asst. yr. 1979-80, the ITO had originally accepted the claim of the assessee for the deduction of such loss in the money lending business but the Commissioner acting under s. 263 modified the assessment by withdrawing the deduction of the loss of Rs. 5,443. But in view of our finding for the asst. yr....

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....as only a lull in the business and, therefore, there cannot be any disallowance of the loss arising in the money lending business in this assessment years also. We, therefore, cancel the order of the CIT made under s. 263 for the asst. yr. 1979-80. 5. For the asst. yr. 1980-81, the only other point relates to the computation of the house property income. The AAC has directed the ITO to accept t....