2009 (3) TMI 15

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....of law as enumerated in the appeal memo are as follows. a) The substantial question of law arises in the present appeal is regarding the true scope and correct interpretation of Sec.68 of the income Tax Act,1961 and other provisions and whether on the facts and circumstances of the case and in law the Hon'ble Tribunal is right in upholding the order of the CIT(A) and deleting the addition of Rs....

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....yment in the account of the lonee prior to the issuance of such cheques. After analysing the entire evidence regarding grant of these loans, there is a concurrent finding of fact of CIT(A) as well as ITAT that the loans were genuine loans. The details of repayments were also furnished. There is also a concurrent finding that the amount of Rs.4,36,838/- was the interest paid by the assessee on such....

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.... of the loans borrowed. The assessee had claimed a deduction under Section-57 (iii) of the Act. The Assessing Officer disallowed this amount on the ground that the assessee had not fulfilled the conditions of claiming deductions under Section-57(iii) read with Section 58 of the Act by holding that the expenditure was not proved to be related to the purpose of earning income. He held that as the ac....

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.....CIT wherein it was held that the nexus between the expenditure and the income need not be direct and even an indirect connection could prove the nexus between the expenditure incurred and the income earned, he held that the expenditure to be deductible. He further held that the quantum of dividend earned had nothing to do with the quantum of claim of interest made u/s. 57(iii) of the Income Tax A....