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2014 (6) TMI 506 - AT - Income TaxPartial deletion of interest paid to bank u/s 57(iii) of the Act – Held that:- The assessee claimed to have borrowed the sum of Rs.77,48,250/- from ICICI Bank and out of which, Rs.75,00,000/- is advance to SBPL - the details furnished by the assessee, the working of the disallowance of interest made by the CIT(A) is not verifiable – thus, the matter is required to be remitted back to the AO to rework out the disallowance of interest considering the utilization of borrowed money - Decided in favour of Revenue. Deletion made u/s 68 of the Act – Held that:- CIT(A) had found from the examination of bank account of Yakub Khan that the sum of Rs.9,00,000/- was deposited by Mr. Khan in his bank account which sum was withdrawn by him from the bank a few days earlier for procurement of some material - CIT(A) has examined in detail the facts of the case relating to each and every creditor - He has meticulously examined the source from where the creditor advanced the money to the assessee and had allowed the relief to the assessee only when he was fully satisfied about the creditworthiness of the creditor and exact source from where creditor advanced the money – there was no infirmity in the order of CIT(A) – Decided against Revenue. Deemed dividend u/s 2(22)(e) of the Act – Held that:- CIT(A) has recorded the finding that SBPL has not given any loan or advance to the assessee - it was assessee’s own money which was utilized by SBPL for making the payments on behalf of the assessee - the assessee produced the copy of account of SBPL in assessee’s books of account - there was always substantial debit balance in the account of SBPL - the assessee advanced the sum to SBPL during the accounting year - the assessee gave the loan to SBPL and not SBPL gave the loan to the assessee - SBPL has incurred certain expenditure on behalf of the assessee and debited the sum to the assessee’s account but, nevertheless, the net result was always substantial debit balance in the account of SBPL - when no loan is given by SBPL to the assessee, the question of application of Section 2(22)(e) does not arise – Decided against Revenue.
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