2015 (4) TMI 1334

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n column no. 10 of form no. 36. Accordingly, we proceed to dispose of the appeals, ex parte, qua the assessee and in that process we have heard ld. DR and perused the material available on record. 3. The assessee, in the relevant assessment year enjoyed income from export of garment in various countries through his proprietorship concern M/s Cocoon Exports. He had filed return of income showing total income of Rs. 43,85,010/-. The assessment was completed u/s 143(3)/144 of the I.T. Act at total income of Rs. 1,04,35,640/-, inter alia, making disallowance of interest as per proviso to sec. 36(1)(iii) of Rs. 22,10,351/-. Disallowance was deleted by ld. CIT(A). Being aggrieved the department is in appeal before us and has taken following gr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rence to above addition, we humbly submit that assessee has not utilized interest bearing fund in connection with above mention assets. During the year under consideration, the assessee ahs introduced fresh capital of Rs. 38,40,000/- on which no claim of any interest has been made in the book. There are no fresh loan taken in connection with acquisition of these assets if the fresh loan has taken those are interest free as explained as under:- Name of the party Amount Ashmeet Singh (HUF) Rs. 3,38,000/- Harmeet Singh Rs. 12,96,530/- Last Resoures (Mrs. Satinder Kaur) Rs. 20,36,661/- Perfection House Rs. 1,00,000/- Satinder Kaur Rs. 13,77,189/- Inca Trade Rs. 8,25,000/- 6. The AO, however, di....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oses. Moreover, and without prejudice to the above, any investments made by an assessee in land etc. to be used for business purposes may not yield any interest or rental income, but this does not imply that the interest paid on loans, if any, taken for such investments is not allowable as a business expenditure. The disallowance made by the Assessing Officer is deleted." 8. Aggrieved, the revenue is in appeal before us. 9. We have heard ld. DR and perused the material available on record. Section 36(1)(iii) reads as under: 36(1) The deduction provided for in the following clause shall be allowed in respect of the matters dealt with therein in computing the income referred to in section 28 - .... .... ....