2008 (12) TMI 325

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....DGMENT The judgment of the court was delivered by 1. C. N. RAMACHANDRAN NAIR J.-The question raised in the appeal filed by the Revenue is whether the Tribunal was justified in sustaining the order of the Commissioner of Income-tax (Appeals) deleting disallowance of interest claimed by the firm amounting to Rs. 3,94,385. We have heard standing counsel appearing for the appellant and counsel a....

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....ould be disallowed. However, the specific case of the assessee is that the firm was never acquiring land and partner was acquiring land in his personal name for the business purpose of the firm after taking advances from the firm, if this is factually correct, then there will be no justification for disallowance of interest because advances taken by the partner are utilised for firm and profit ear....