Assessment was\u00a0 reopened on ground that the\u00a0 assessee had provided temporary advance of Rs. 7.96 crores in respect of nine concerns for non-business purpose and raised huge secured loan and claimed interest expenses on such secured loan which were utilized for providing temporary advance to sister concerns and accordingly, claim of interest expenses was not at all related to business. Assessee submitted that he had sufficient funds other than borrowed funds to make such advances and there was no nexus between borrowed funds and such advances and, consequently no part of interest paid by assessee to banks\/financial institutions was disallowable.\u00a0 The Assessing Officer passed the reassessment order disallowing the interest. The assessee filed revision application before the Principal Commissioner. Commissioner rejected the application. On writ allowing the petition\u00a0 order of commissioner and reassessment order was set aside\u00a0 (AY.\u00a0 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 264 : Commissioner-Revision of other orders-Temporary advance in respect of nine concerns-Interest on borrowed capital-Reassessment-Rejection of revision application is held to be not valid [S. 36(1)(iii) 147, 148, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31795","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8gP","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31795"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31795\/revisions"}],"predecessor-version":[{"id":31796,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31795\/revisions\/31796"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}