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2020 (10) TMI 1114 - ITAT MUMBAIRectification application u/s 254 - Disallowance u/s 36(1)(iii) - As per assessee disallowance under Sec.36(1)(iii) of the interest expenditure of ₹ 3,53,06,301/-, as had been sustained by the Tribunal, was liable to be restricted only to the extent of ₹ 6,534/- - HELD THAT:- Advancing of loans to third parties and overdrawing of the capital account of the partners could safely be related to the interest bearing loans or the bank overdrafts availed by the assessee. As regards the claim of the assessee that profit of ₹ 29.73 crores generated during the year under consideration was available with it to explain the source of the interest free advances given during the year under consideration, it was observed by the Tribunal that the said profits would only go to reduce the debit balances, overdrafts etc. In fact, it was observed by the Tribunal that a perusal of records revealed that the cumulative balance in the capital accounts of the partners on 31.03.2011 after crediting the profits of ₹ 29,73,91,730/- therein stood reflected at ₹ 14,62,65,453/- (dr.) Tribunal while upholding the disallowance u/s 36(1)(iii) of ₹ 3,53,06,301/-, had taken a conscious view in the backdrop of the facts available on record. Considering the claim raised by the assessee in its aforesaid application, we find ourselves to be in agreement with the contention advanced by the ld. D.R, that the assessee in the guise of the present application is in fact seeking a review of the order that was passed by the Tribunal while disposing off the appeal is beyond the powers vested with the Tribunal under subsection (2) of Sec.254. - Decided against assessee.
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