2013 (8) TMI 1054

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....gh, Sr.DR. ORDER PER G.D.AGRAWAL, G.D.AGRAWAL, VP : This appeal by the Revenue is directed against the order of learned CIT(A), Ghaziabad dated 30th April, 2012 for the AY 2007-08. 2. The Revenue has raised the following grounds:- "1. That the ld.CIT(A) has erred in law and on facts of the case, by not appreciating the application of section 28 of the I.T.Act 1961 as per which the valu....

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....irm or the individual. As such, like deemed, notional interest is also chargeable in the given case. 3. Therefore, the order of the ld.CIT(A) be cancelled or set aside and the order of the AO may be restored. 4. The appellant craves leave to modify/amend or add any one or more grounds of appeal." 3. The facts of the case are that the assessee is a partnership firm and the Assessing Offic....

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....nsequently, has not paid any interest either. Therefore, there is no question of any disallowances, fully or partly, out of interest debited to P & L A/c either! 4.2 Even in respect of partnership arrangement, there is no clause in the Partnership Deed which requires the firm to charge interest on debit balances in the partner's account, nor there is any provision for payment of any interest....

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....finding that in this case, there is no claim of interest payment by the assessee and, therefore, it can also not be said that there was diversion of interest bearing funds. This finding recorded by the learned CIT(A) has not been controverted before us. In the grounds of appeal, the Revenue has referred to Section 28 and claimed that the benefit or perquisite whether convertible into money or not ....