Borrowed fund can not be given as interest free loan to other and on disallowance of exp AO must be mention some reason for such

Last updated: 03 January 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
(i) That the sustaining of disallowance of interest Rs. 1,61,226/- by Ld. Commissioner of Income Tax (Appeals) on the ground that assessee has made interest free advance of borrowed funds in arbitrary, unjust, unwarranted and at any rate very excessive by wrongly observing that books of the assessee are not proper and do not disclose its full and true income and as such are not reliable. (ii) That the sustaining of disallowance of business development expenses of Rs. 2,13,123/- by Ld. Commissioner of Income Tax (Appeals) is arbitrary, unjust, unwarranted and at nay rate very excessive by wrongly observing that books of the assessee are not proper and do not disclose its full and true income and as such are not reliable. (iii) That the sustaining of disallowance of telephone expenses of Rs. 2,05,123/- by Ld. Commissioner of Income Tax (Appeals) is arbitrary, unjust, unwarranted and at any rate very excessive by wrongly observing that books of the assessee are not proper and do not disclose its full and true income and as such are not reliable.

Citation :
Amarpali International,4/8, Asaf Ali Road,New Delhi – 110 002(PAN: AAHFA 8022B)(Appellant)Vs Assistant Commissioner of Income, Tax,Circle 30(1),New Delhi (Respondent)