2012 (10) TMI 1111

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.... Respondent by : Shri Y.P.Verma, Sr.D.R. O R D E R PER SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER : This is an appeal filed by the Assessee arising from the order CIT(A)-V, Baroda dated 5.10.2009 and the only ground raised before us is as follows:- 1. On the facts and circumstances of the case as well as in law, the lrd. CIT(A)-V, Baroda, was erred in not declaring(sic.) deleting....

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....uld have retained the said amount, then there was no requirement of payment of interest. The AO has concluded that it could be presumed that the assessee has advanced interest-free loans out of the interest-bearing funds. For this legal proposition, reliance was also placed on few decisions. Finally, a proportionate interest @12% amounting to Rs. 4,12,600/- was added. Being aggrieved, the matter w....

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....essment order. The appellant is deriving rental income from school building and business income from maintenance of the hostel and the administrative building. The appellant is not in the finance business. It could not be shown that the interest free advances were for the business purpose of the appellant. The argument of the appellant that the interest free advances have assisted the educational ....

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....me part could at best be said to be out of the interest bearing funds. The appellant is directed to provide all the details to the AO in this regard and the AO would accordingly, recomputed the disallowance. Ground No.2 is partly allowed subject to verification by AO." 4. Ld.AR Mr. Manish J.Shah has drawn our attention on the figures of the interest-free funds available with the assessee. Ld.AR....