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2015 (9) TMI 174 - AT - Income TaxDisallowance interest/ bank charges paid to bank on overdraft - Held that:- It is a fact that whatever names mentioned by the ld. CIT(A) in his findings were the loanee in preceding years. Therefore, the ld. CIT(A)’s finding is totally wrong. However, the AO’s findings in case of M/s. Mittal Pigment (P) Ltd. and M/s. Gaurav (P) Ltd. were found correct that during the year under consideration the assessee had given ₹ 60 lacs on CD A/c maintained with HDFC Bank bearing A/c no. 1672070000032 on 12-12-2005 to M/s. Mittal Pigment (P) Ltd. and ₹ 1.50 crores to M/s. Gaurv (P) Ltd. on 17-01-2006 from the bank saving a/c No. 450101 – 423915 maintained with Rajasthan Bank Ltd., Kota. The assessee has transferred ₹ 43 lacs from CD A/c of HDFC Bank, Kota to A/c No. 1672070000032 on 1-02-2005 in the bank maintained with Rajasthan Bank Ltd., Kota. The assessee had not charged any interest. It is undisputed fact that the assessee had paid bank interest of ₹ 472,324/- which includes interest paid to HDFC Bank, Kota at ₹ 1,21,214/- and SBI, Chawni Branch, Kota at ₹ 3,51,110/- which has been directly adjusted by the assessee against interest income. The AO had established the nexus that the assessee had borrowed the funds on interest and advance the interest free loans to the sister concerns or other concerns. Thus in view of the above deliberations, we confirm the order of the ld. CIT(A). - Decided against assessee.
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