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2015 (2) TMI 248 - ITAT PUNEAddition u/s 50C - CIT(A) deleted the addition - Held that:- While holding that the transaction was sale of a capital asset, the Assessing Officer did not apply the relevant provisions to calculate the assessable capital gains income. Instead, he picked up the solitary provision of section 50C of the Act and tinkered with total consideration on the ground that the stamp duty valuation was higher than the stated consideration by a sum of ₹ 1,23,600/-. The discussion made by the CIT(A) demonstrates that if the provisions of the Chapter IV-E relating to the taxability of income from capital gains are applied to the present case, the resultant tax payable would be lower than what has been returned by the assessee. The aforesaid factual matrix has not been controverted by the Revenue before us and therefore, we affirm the order of the CIT(A) in deleting the addition of ₹ 1,23,600/- made by the Assessing Officer. - Decided against revenue. Interest on advances for non-business purposes - CIT(A) deleted the addition - Held that:-no reason to interfere with the conclusion drawn by the CIT(A). The finding of the CIT(A) is that assessee was possessing sufficient interest-free funds of its own, which were generated in the course of relevant financial year apart from the substantial share-holder funds which covered the impugned interest-free advances and therefore a presumption has to be drawn that such interest-free advances have been made out of interestfree funds available with the assessee. Factually speaking, the aforesaid finding of the CIT(A) has not been assailed before us on the basis of any cogent material or evidence. Since the aforesaid finding is not in dispute, then the ratio of the judgement of the Hon’ble Bombay High Court in the case of Reliance Utilities & Power Ltd. (2009 (1) TMI 4 - HIGH COURT BOMBAY) is clearly attracted and the disallowance of ₹ 15,21,946/- made by the Assessing Officer has been rightly deleted by the CIT(A). The investment in non-interest bearing advances/shares has been made out of own funds and hence the disallowance u/s 14A is not justified. - Decided against revenue.
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