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2013 (8) TMI 948 - ITAT PUNEDisallowance of interest - Held that:- Once interest is paid in respect of funds used for purposes of business there is no question of its disallowance under Section 36(1)(iii) of the Act and there would not be a necessity to see as to whether the funds advanced to sister concern are out of interest-bearing borrowings or not. Disallowance of expenditure paid towards stamp duty on and in respect of the merger - Held that:- The income-tax authorities have disallowed the expenditure on the ground that it was in the nature of capital expenditure. On this aspect, we find that there is no material to hold that the expenditure is not in the nature of capital expenditure. Admittedly the expenditure was incurred by way of stamp duty paid on land owned Trinity Thermal Pvt. Ltd. which had since merged with the assessee in terms of an amalgamation scheme. The orders of the authorities below in this regard are affirmed as assessee has not made out any credible argument against the orders of the authorities below holding the impugned expenditure to be capital in nature. Thus, assessee fails on this Ground. Depreciation on buildings - Held that:- ere was no evidence to show that the building was complete and put to use during the year under consideration. The CIT(A) has also denied the claim primarily basing on the contents of the Director’s report of the assessee company which indicated that the building was still under construction as on 31.03.2008. The CIT(A) further noticed from the Director’s report an averment that the company would start installation of equipments in the building from October, 2008. There is no material brought on record to negate the findings of the Assessing Officer as well as the CIT(A) and for that reason we are unable to interfere with the conclusion drawn. Disallowance of Telephone Expenses on the ground that the same was for personal use Disallowance on the basis of ITS data - Held that:- We restore the matter back to the file of the Assessing Officer who shall allow a reasonable opportunity to the assessee to reconcile the ITS data and thereafter he shall examine the impugned addition afresh as per law. Ad-hoc disallowance of Welfare Expenses - Held that:- Notably, both the authorities below have launched into a statistical exercise to arrive at a disallowance out of staff welfare expenses, when there is no iota of material or evidence to say or pint-point any expenditure of non-business nature. Nevertheless, we also find that the explanation rendered by the assessee with regard to the increase in the expenditure on account of regrouping of expenses, incurrence of expenditure for entire period as compared to for a lesser period in the preceding year, increase in turnover etc. have not been faulted at all. Considering the explanation furnished as also the absence of any material to doubt the genuineness of the expenditure claimed, we find no reasons to uphold the impugned disallowance.
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