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2017 (10) TMI 1299 - ITAT PUNEAddition on account of borrowed capital - entitled to make the said claim in the return of income filed in response to notice under section 153A - Held that:- AO held that as per provisions of section 153A of the Act, total income of the assessee for earlier six years was to be re-assessed, wherein the correct income was to computed; but the contention of assessee that it could make fresh claim and expenditure or deduction which was not made in earlier return was not accepted being not the position of law. AO held that what the assessee could not claim in original return or revised return, the same could not be claimed under the shelter of search assessment. Accordingly, the claim of assessee in this regard was rejected. In assessment year 2005-06, the assessee had made claim of interest expenditure which was added back to the income of assessee. Disallowance under section 36(1)(iii) - Held that:- The assessee is not entitled to claim any deduction on account of fresh claim i.e. on account of interest and depreciation in the respective years. Applying the ratio laid down by the Hon’ble Bombay High Court in (1) Continental Warehousing Corporation (Nhava Sheva) Ltd. All Cargo Global Logistics Ltd. (2015 (5) TMI 656 - BOMBAY HIGH COURT) and in CIT Vs. Shri Deepak Kumar Agarwal [2017 (9) TMI 850 - BOMBAY HIGH COURT],we hold that in the years under appeal, where the assessment has not abated, then no deduction is to be allowed in respect of fresh claim made in the return of income filed in response to notice under section 153A of the Act. Disallowance of interest against interest free advances made by the assessee - Held that:- The perusal of Balance Sheet in respect of all the years reflect the availability of interest free funds with the assessee, out of which the said interest free advances have been made by the assessee. Relying on the ratio laid down by the Hon’ble Bombay High Court in CIT Vs. Reliance Utilities & Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT) we hold that availability of funds as on the date of Balance Sheet has to be seen and there is no merit in the orders of authorities below in looking at the day-to-day position of availability of funds.
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