TaxTMI 
TaxTMI 
2025 (6) TMI 1140
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....he assessee against the order dated 25.11.2024 by the CIT(Appeal, ADDl/JCIT(A)-4, Chennai (hereinafter referred to as 'CIT(A)'] for the assessment year 2006- 07. 2. Brief facts of the case are that the assessee is a firm engaged in finance and money lending. The assessee has filed return of income for assessment year 2006-07 declaring total income of Rs. 4,62,590/- and the return was processed u/....
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.... where expenditure is claimed only when it is actually paid. Though Rs. 52.82 lakhs was payable to the partner @12 p.a., the firm paid only Rs. 5,00,000/- due to lack of funds. The assessee relied on the decision of Mumbai Bench of the Tribunal in the case of ITO vs. MM Textiles (31 SOT 207). However, the Assessing Officer rejected the explanation and held that interst expenditure was not incurred....
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....nership deed and within permissible limit of section 40B of the Act. He submitted that act does not prescribe any condition that the capital introduced by the partners must be utilized exclusively for business purposes to allow interest u/s 40B, further the assessee earned business income by way of interest from M/s Muthoot Fincorp Ltd. to the tune of Rs. 5026.56 for delayed settlement of sale con....