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2013 (7) TMI 356 - ITAT KOLKATANon deduction of TDS - CIT(A) deleted the disallowance - Held that:- As it is the case of non-supply of material, however, as stated that in respect to issue of certificate u/s. 194C(4) the same can be verified by AO. In respect to other four parties except Excel Movers Pvt. Ltd. it is a fact that these parties have supplied stone chips, sand, jama, gas, certain other materials for construction of road and it is not the expenditure on account of any contract etc. Hence confirm the order of CIT(A) on this issue. With respect to certificate issued in the case of Excel Movers Pvt. Ltd. u/s. 194(4) by the ITO, Ward-1(2), Kolkata, the same can be verified by the AO at the time of giving appeal effect to this order and in case, there is a certificate, AO will allow the claim of assessee. This ground of revenue’s appeal is dismissed in terms of above. Interest on borrowed fund utilised for advancing interest free loans - CIT(A) deleted the additions - Held that:- As relying on Munjal Sales [2008 (2) TMI 19 - Supreme Court] & CIT v. Reliance Utilities & Power Ltd [2009 (1) TMI 4 - HIGH COURT BOMBAY] if there be interest-free funds available to an assessee sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. Once assessee has interest free fund available with it, then the interest free advance given to associate concerns is clearly covered in favour of assessee. Against revenue. Foreign tour expenses disallowed - CIT(A)deleted the addition - Held that:- As the assessee company is dealing in a number of engineering and technical activities and projects. Further, directors have undertaken foreign tour to attend trade fair, conferences etc. in UK, Japan, Singapur, Taiwan etc. This finding is not controverted by CIT, DR at the time of hearing and he only relied on the assessment order. Thus deletion made by CIT(A) is quite reasonable and appeal of revenue is dismissed. Disallowance of deduction u/s. 80IA on the basis of turnover as reported in TDS certificate - CIT(A) deleted the disallowance - according to assessee, it has shown turnover with different Government Departments in the previous year under consideration on accrual basis whereas Government Departments following cash system of accounting and have deducted TDS only on payments which actually have been made during the previous year under consideration - Held that:- Finding no infirmity in the reconciliation submitted by assessee and the order of CIT(A) that the assessee has received payments by account payee cheque, which is not controverted by revenue order of CIT(A) upheld and this issue of revenue’s appeal is dismissed.
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