1999 (4) TMI 58

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.... in the circumstances of the case, the Tribunal was correct in law in upholding the order of the Commissioner of Income-tax (Appeals) that interest received on loan to Kedarnath Mohanlal would be assessable under the head 'Business' ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the finding of the Commissioner of Income-tax (Appeals) that depreciation on the flat 'Rajhans' and the maintenance expenditure for the name would be deductible as business expenditure ?" The assessee has constructed a factory shed and started an oil mill. As he suffered heavy losses, he closed the oil mill and even sold the machinery installed for the business. Thereafter the assessee-company let out t....

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....ribunal has treated this interest as income from the business. No names of the parties have been given but only on the claim of the assessee, the Tribunal has accepted the fact that the assessee has advanced loan to various parties. But if we read carefully again the assessment order itself, the facts are very clear that the assessee has claimed interest of Rs. 19,500 receivable from Kedar Nath Mohanlal. Nowhere has the assessee claimed before the Assessing Officer that the interest of Rs. 19,500 is receivable from various parties. Thus the finding of the Tribunal is perverse and when the amount is advanced only to one party in the earlier years, the sole instance of advance of money cannot be treated as the assessee is having money-lending....