2016 (7) TMI 60

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....r Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 6th March, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 2007-08. 2. Mr. A. R. Malhotra, the learned counsel for the Revenue urges the following questions of law for our consideration : "(i) Whether on the facts and in the circumstances of the ca....

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....6(1)(iii) on account of interest disallowed even though in the case of K. Somasundaram & Brothers vs. CIT (1999) 238 ITR 939, it was held that when 'income earned by utilizing the borrowers is 'diverted' for non business purposes, deduction is allowable ... where the assessee paid interest on borrowers for business, later on out of business receipts the assessee advanced interest free ....