2007 (8) TMI 292

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..... This is an appeal under section 260A of Income Tax Act at the instance of assessee for the Assessment Year 1989-90. During the assessment proceedings, the Assessing Officer disallowed interest of Rs. 87,064/- on an amount of Rs. 4,83,687/-. The Assessing Officer was of the view that the assessee has diverted its found and purchased agricultural land not for business purpose for a sum of Rs.4,83,....

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....sessee company. But the assessee had the sufficient fund to purchase the agricultural land for a sum of Rs.4,83,687. 3. The matter was examined in depth by the Assessing Officer. The Assessing Officer rejected the contention of the assessee that the assessee company has raised the funds by issuing share capital. The Assessing Officer found that the agricultural land was purchased after taking o....

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....is no case of making the disallowance of interest in the period relevant to assessment year 1989-90. The said finding has been reversed by the Tribunal. The Tribunal has found that the fact remains that there was an overdraft at the time of purchase of land for Rs.2,33,000/- in 1982-83 and so also during 1983-84 and in the absence of details of capital and reserves deployed, it cannot be presumed ....

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....rs. There is no such finding in the case on hand. Therefore, the said decision does not help the appellant in any manner. The other case relied upon by the learned counsel for the assessee is Commissioner of Income Tax and another Vs. Radico Khaitan Ltd. (2005) 274 ITR 354 (All). This ruling also has no application to the present case as it was in relation to sections 28 and 56 of the Income Tax A....