2003 (1) TMI 650

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....ORDER B.M. Kothari, AM. - The only ground raised by the assessee in this appeal relates to confirmation of an addition of Rs. 45,000 made by the Assessing Officer as "interest not charged on advance given to M/s. Krishna Traders for non-business purposes". 2. The ld. counsel appearing on behalf of the assessee drew our attention to a copy of letter dated 26-12-1985 sent by M/s. Krishna Trade....

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....f the assessee from SY 2040 (assessment year 1985-86) to assessment year 1990-91. The assessee did not charge any interest in assessment years 19985‑86 and 1986-87 (S.Ys. 2040 and 2041). The learned counsel submitted that it is not a case where the interest expenditure has been disallowed but addition has been made in respect of hypothetical interest income, which never accrued to the assess....