TMI Blog2023 (8) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... cts 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Act ) by the ACIT, Range-18, New Delhi (hereinafter referred as the Ld. AO). 2. At the outset it is observed that the appeal has been filed with the delay of 18 days for which assessee has given an explanation that due to some personal reasons of his father s ill health he had gone to Nepal due to which this delay of 18 days. The delay is not inordinate and there is sufficient justification in the form of affidavit, accordingly delay is condoned. 3. The assessee filed return of income declaring total income of Rs. 6,92,42,040/- which was taken up for scrutiny and apart from other disallowances, the Ld. AO had made disallowance which were sustained by Ld. CIT(A) and before this Tribunal assessee has raised following grounds :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e TDS deducted by various parties it was noted that there is total undisclosed TDS of Rs. 487364.94/-. The assessee on 18.03.2014 was asked to reconcile the undisclosed TDS and was show caused why not the income relevant to undisclosed TDS be not added to its total income. 5.1. The assessee on 25.03.2014 submitted the details wherein the income relevant to undisclosed TDS has not been included in its total income. Further, the assessee on 28.03.2014 submitted reconciliation in respect of following parties. 1. Ethiopian Airlines 2. HT Media Ltd. 3. HVM Associates (P). Ltd. 4. Tetra Information Service (P). Ltd. 5. Kotak Mahindra Bank Ltd. 6. Huawei Telecommunication (India) Company (P). Ltd. 5.2. Ld. AO observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he copy of same is made available at page no. 68 of the paper book. It is submitted that in Form 26AS made available on paper book from page 38 to 66 at page no. 60 the bank charges of Rs. 6,09,083/- are mentioned along with tax deducted by the concerned party of Rs. 16,500/-. Ld. DR however supported the findings of Ld. Tax Authorities. 7. Appreciating aforesaid it can be observed that the Ld. CIT(A) while giving finding in para no. 4.5, 4.5.1 has not taken into consideration the aforesaid 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, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to disallowance of Rs. 71,36,000 out of on loan on estimate basis for which interest free advances were given by the assessee to its subsidiary companies. The first amount referred to is an amount of Rs. 3.4 Crores advanced to M/s Unison Hotels South (P) Ltd. The appellant has stated that it has interest free funds of Rs. 389 Cr. and interest bearing funds of Rs. 227.05 Crs. In this context, the amount of advance of Rs. 3.4 crores should be presumed, to be out of interest free funds. Without prejudice to the aforesaid submission, the appellant has also submitted that the rate of disallowance of interest @ 16% is totally incorporated. The submission of the appellant has been examined. It is seen that the rate of interest of loans taken by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeal is disposed. 9.1 It can be observed that the assessee has claimed that it has sufficient interest free funds of Rs. 38,495/- crores and business assets worth Rs. 611.37 crores while the interest free advances were 5.44 crores. Thus, the free funds were more than sufficient to make investment and give interest free advances. Considering the 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. At page no. 70 of the paper book 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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