The assesseis engaged in the business of dealing in shares. It had paid interest on borrowed funds utilized for advance towards share application money. These shares were held as stock in trade by the assesse. Hence, it could be safely concluded that the assesse had utilized the borrowed funds for business purposes. The department had accepted borrowing being used for business purposes in the earlier year. Thus, allowing the appeal of the assesse the Tribunal held thatthe department cannot take a different stand during the year and directed the AO to delete the disallowance made towards interest paid on borrowed funds. (AY.2004-05)