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2020 (9) TMI 326 - ITAT HYDERABADDisallowance of interest paid on borrowed capital @ 12% - Addition on an estimated basis in respect of amount alleged to be diverted as interest free advances to sister concern - HELD THAT:- As on 01/04/2012, the assessee had sufficient interest free own funds in its kitty in order to make interest free advances to its group concerns. We also find that the own funds available with the assessee are much more than the interest free advances given to the group concerns. Hence, it can be safely presumed that interest free advances given to the group concerns were only out of own funds of the assessee and not out of borrowed funds. See case of Reliance Utilities Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] and in HDFC Ltd. reported in [2014 (8) TMI 119 - BOMBAY HIGH COURT]. Respectfully following the ratio decidendi of the same decision, we hold that there cannot be any disallowance of interest on borrowed capital in the facts and circumstances of the case. Delayed Employees contribution to PF and ESI - contribution remitted beyond the due date prescribed under the respective statutes but, the same had been remitted before the due date of filing of return u/s 139(1) - HELD THAT:- Respectfully following the said decision in the case of VBC Industries [2015 (6) TMI 1 - ITAT HYDERABAD] we hold that there cannot be any addition towards employees contribution to PF & ESI when the said contributions were duly remitted before the due date of filing of return of income u/s 139(1) of the Act. The grounds raised in this regard are allowed.
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