2013 (5) TMI 193

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....This is an Appeal by the Revenue arising out of the Order by the Commissioner of Income Tax (Appeals)-II, Thane ('CIT(A)' for short) dated 22.11.2010, allowing the assessee's appeal contesting its assessment for the assessment year (A.Y.) 2007-08 u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) vide order dated 30.12.2009. 2. The only issue arising in appeal is the maintainability i....

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....qualify for deduction u/s.36(1)(iii). He, therefore, finding the mandatory prescription of the section as having been not satisfied/met, disallowed interest, reckoning the same at 8% p.a., i.e., the interest rate applicable on the unsecured loan/s, with reference to the assessee's investment in the said partnership firm (Rs.204.69 lakhs). 2.2 In appeal, the assessee found favour with the ld. CIT(....

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.... perused the material on record. 4.1. No doubt, an investment may not yield immediate profits or even profits in the short term. What has, therefore, to be seen is the purpose for which the investment has been made and, of course, from the businessman's point of view. As such, if the same is a business investment, for profit purposes, interest on the borrowed capital utilised for the same would b....

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....e assessee has sufficient capital of his own, which the assessee was able to exhibit to us with reference to the relevant documents forming part of the record, and toward which we may refer to the assessee's balance-sheet as at the year-end (31.03.2007), reflecting a capital at Rs.478.88 lakhs (PB page 34). The said balance-sheet also bears the assessee's investment in his proprietorship as well a....