2021 (3) TMI 431

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....r : Mr.Niranjan Rajagopalan For the Respondents : Mr.A.P.Srinivas Senior Standing Counsel ORDER Heard the learned counsel for the petitioner and respondent. The present writ petition has been filed by the petitioner against the impugned order dated 22.3.2018 passed by the first respondent Principal Commissioner Of Income Tax under section 264 of the Income Tax Act, 1961. 2. By the impu....

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....t the petitioner had paid amounts to Mrs.Thillaikarasi out of borrowed amount from Karur Vysya Bank Ltd and claimed the business expediture the interest paid thereon. In the Assessment order, dated 31.12.2015 the second respondent disallowed the same. Aggrieved with the same the petitioner filed application under section 264 of the Income Tax Act, 1961 on 31.12.2017, after a lapse of two years. ....

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....M/s.Gestione Consulting Pvt. Ltd entered into a Tripartite memorandum of agreement whereby the rights of the petitioner under the agreement dated 20.4.2007 stood assigned in favour of M/s.Gestione Consulting Pvt. Ltd and to compensate Mrs.Thillaikarasi for the purported loss on agreement holder in the Memorandum of Agreement dated 20.4.2007, it recorded that Mrs.Thillaikarasi was entitled to recei....

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....tivity of the petitioner to develop a software technology Park and therefore the interest borne on such borrowed capital paid to Mrs.Thillaikarasi was liable to be allowed as a business expenditure. I have considered the arguments advanced by the learned counsel for the petitioner. 9.From the facts narrated it is evident that the petitioner had borrowed capital from the bank and paid amounts th....