TaxTMI 
TaxTMI 
2006 (3) TMI 208
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....14, a mistake has been committed in calculating the percentage of funds employed in the business of granting loans and advances. He drew our attention to para 14, where it has been mentioned that for asst. yr. 1998-99, the capital employed in the activity of granting of loans was Rs. 1.76 crores as against total funds available amounting to Rs. 3.26 crores but while calculating the percentage it has been stated that deployment of funds in the business of loans was less than 50 per cent though it was more than 50 per cent. Similar is the situation in respect of asst. yr. 1999-2000. According to him, the conclusion of the Tribunal in this regard is based on incorrect facts. Accordingly, the order requires rectification. On the other hand, the....
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....fact, the percentage is more than 50 per cent and therefore, the Tribunal has committed mistake apparent from record in mentioning that capital employed in granting of loans was less than 50 per cent. Accordingly, the order of the Tribunal in para 14 is modified. Consequently, the conclusion based on such facts is also vacated. As a result thereof, paras 14 to 17 are substituted as under: "14. Coming to the aspect of employment of capital. we find that in the asst. yr. 1997-98, the loans and advances as per Sch. VI amounted to Rs. 1.14 crores approximately while the total capital including borrowed funds and reserves amounted to Rs. 3.44 crores approximately. This also shows that employment of capital in the activity of granting loans and ....
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....es. The counsel for the assessee relied on the judgment of Special Bench in the case of Con coed Commercial (P) Ltd. (2005) 94 TTJ (Mumbai)(SB) 913 for the proposition that if the principal business carried on by the assessee is that of banking OI granting of loans and advances, then provisions of the Explanation to s. 73 of the Act cannot be applied. There cannot be any dispute to this legal position. However, the facts of the case have to be examined to ascertain whether the principal business of the assessee is that of banking OI granting of loans and advances. Admittedly, in the present case, the assessee was not carrying on any banking activity. Therefore, the entire burden is on the assessee to prove that the principal business of the....