2015 (4) TMI 628

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....61 with retrospective effect, the Income Tax Tribunal was justified in law and on the facts to delete addition of Rs. 8,43,660/- coming under sec. 36(I)(iii) of the Income Tax Act, 1961?" It is not in dispute that a sum of Rs. 1.99 crore was invested by the assessee from the cash credit account for purchasing shares by transferring the aforesaid sum to the account of Aryan Energy Pvt. Ltd. It is also not in dispute that on account of transactions in the cash credit account a sum of Rs. 3,99,553/- was debited towards interest. Question arose whether the interest incurred or paid by the assessee is deductible from the taxable income. The learned Tribunal has answered the question as follows: "Considering the totality of the facts of the....

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....fer one to one explanation to establish that the money borrowed from United Bank of India was not spent for the purpose of purchasing the shares. Since the assessee did not discharge his obligation, the Assessing Officer had refused to allow the deduction. Without applying mind, the learned Tribunal upheld the contention of the assessee. We, therefore, propose to remand the matter to the Assessing Officer. Ms. Gutgutia, learned Advocate for the appellant however submitted that there is no reason why the matter should be remanded. She relied upon a judgment of this Court to which one of us (G.C. Gupta,J.) was a party in the case of CIT vs. RKBK Fiscal Services Pvt. Ltd., reported in (2013) 358 ITR 228 (Cal). What had happened in that case wa....