TaxTMI 
TaxTMI 
2007 (8) TMI 292
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....f 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.4,83,687/- and therefore the assessee was not....
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....ufficient 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 overdraft from the bank. The Assessing Offic....
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....terest 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 that same were available for purchase of ag....