2001 (5) TMI 813

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....rguing that in absence of specific reasons, the submission of the Assessing Officer cannot be accepted. During the later stage of the proceedings, however, he reconciled to the usual causes of delay in filing of Departmental appeals and withdrew his verbal submissions against condonation of the delay. In view of these positions, the delay is condoned and the appeal is admitted. 2. The assessee earned considerable income by way of capital gains, dividend and interest during the year under consideration. The first ground in this appeal relates to the addition of Rs. 10,506 in the matter of claim of interest payment, as deleted in the first appeal. The Assessing Officer discusses in this connection that although the assessee claimed inte....

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....had been utilised for non-business purposes interest would not be deductible under section 36(1)(viii). So far as the present case before us is concerned, the diversion of the loans has been done to a field which itself earned sufficient income for the assessee. Hence, in our view, the ld. DCIT(A) acted correctly in allowing the claim of the assessee towards interest payment. His action is thus being confirmed. 3. In the next ground, it is contended that when the amount deposited by the assessee in the P.P.F A/c. had not been made from out of the income chargeable to tax of the previous year relevant to the particular assessment year, the ld. DCIT(A) was not justified in directing the Assessing Officer to allow corresponding rebate un....