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2023 (8) TMI 372 - ITAT DELHIAddition on account of difference in amount of income offered by assessee and entries mentioned in ITS statement - HELD THAT:- CIT(A) while giving finding has not taken into consideration the affidavit as with regard to REVO Content Services (P) Ltd. The Bench is of considered opinion that when a fact is denied specifically on affidavit before any quasi judicial authority, specially Tax authorities who have powers of enquiry too, then without any attempt to discredit the depositions made in affidavit on basis of some facts or evidence the claim should be believed. Specially when an assessee is telling on oath that it has no concern with a particular party then that should be enquired into and which is missing in the orders of Ld. Tax authorities here. Addition on that account is not sustainable. For Huawei Telecommunication (India) Company (P) Ltd. once assessee does not deny its transaction with then in the absence of any confirmation being filed from the said company that the amount involved was only 6,09,083/- and not 6,93,767/- the assessee can only benefit to the extent that addition can be restricted to Rs. 84,684/- (6,93,767- 6,09,083) but that will entitle assessee to full credit of Rs. 52,881/- against Rs. 16,500/-. Accordingly, the issue is allowed to the benefit of assessee however, Ld. AO will re-compute the disallowance and credit as per aforesaid observations. Disallowance of interest against interest free loans given to subsidiary companies - money was given out of internal accruals and no disallowance is required to be made - HELD THAT:- As observed admitted states of affairs appearing on record there appears to be no dispute to the fact that assessee’s total reserves and funds far exceeded the interest free advances - bifurcation of the funds available with the company and assets held as on 31.03.2011 has been provided which support the contentions of Ld. AR that there is a presumption that interest free funds are used when available to give interest free advances for non-business purposes.See CIT vs. Reliance Utility and Power ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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