2014 (12) TMI 722

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....OPARKAR, SR. ADVOCATE, MRS SWATI SOPARKAR, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. Since, the issue involved in both these appeals is common, they are heard together and disposed of by this common judgment. 2. The appellant-revenue has filed these appeals, challenging the order of the ITAT, Ahmedabad (for short, 'the Tribunal'), Dated : 12.08.2005, rendered in ITA No. 518/Rjt/2004 for ....

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....the assessee had already sold the shares purchased by him, and therefore, the purchase value being covered by the sale consideration, there cannot be any interest payment to the companies in question. The AO, hence, made certain additions to the income of the assessee and also initiated the penalty proceedings under Section 271 (1)(c) of the Act. 4. Being aggrieved with the same, the assessee a....

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....per perspective and erred in deleting the additions made by the AO under Section 36(1)(iii) of the Act. He submitted that the CIT(A) and the Tribunal ought to have appreciated the fact that there was, in fact, no borrowings by the assessee, and hence, there cannot be any interest payment. He, further, submitted that in view of the fact that the assessee had intentionally debited huge amounts towar....

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....or the parties and perused the material on record including the orders passed by the CIT(A) and the Tribunal. From the record it appears that the AO disallowed the interest expenditure mainly on the ground that the interest payment was not made in respect of capital borrowed during the course of business. However, from the written submissions made by the respondent-assessee, it clearly transpires ....