2009 (2) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nst the judgment dated 16.11.2007 passed by Income Tax Appellate Tribunal (hereinafter referred to as the 'Tribunal') in ITA No 2209/Del./2004 pertaining to the assessment year 1998-99. 2. The only issue which arose before the Tribunal was whether the Commissioner of Income Tax (Appeals) [hereinafter referred to as the 'CIT(A)'] had misdirected itself in law in deleting the disallowance of inte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... profit and loss account for earlier and subsequent years that is assessment years 1996-97, 1999-2000 and 2000-01. The assessee also claimed that the borrowings were made for the purposes of business and, therefore, the interest was amenable for deduction under Section 36(1)(iii) of the Act. The Assessing Officer, however, was not persuaded and hence disallowed the deduction. One of the reasons fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee's explanation with respect to this aspect of the matter as well as the fact that it had been doing business of trading in shares which had resulted in generation of funds is noted extensively in paragraph 4.9 of the impugned order, as also, the fact that the assessee had claimed that funds had been generated as a result of monies received from two concerns, namely, M/s Creative Impex and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rectly held that the onus was on the Revenue to establish that the loan raised by the assessee had been utilized for the purpose of investment in shares of M/s Oswal Agro Mills Ltd. The Tribunal noted that this onus had not been discharged by the Revenue. It also noted the fact that the assessee on the other hand had submitted that the investment in shares of Oswal Agro Mills Ltd have been made ou....