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2015 (10) TMI 1 - AT - Income TaxAddition on account of interest free advances made by the assessee to its subsidiary company - CIT(A) deleted the addition u/s 36(1)(iii) - Held that:- The Assessing Officer during the year under consideration had computed the disallowance under section 36 (1) (iii) of the Act on account of interest free advances made by the assessee to its subsidiary whereas it had claimed interest expenditure in its Profit & Loss Account. The plea of the assessee before us was that the said advances were made to its subsidiary company which had been acquired in furtherance of his business need. The plea of the assessee is that the said advance having been made during the course of carrying on of his business does not merit any disallowance of interest because of business exigency. We further find that similar issue arose before the Tribunal in assessee's own case relating to assessment year 2005-06 and 2006-07 wherein the Tribunal vide separate orders dated 29.07.2009 and 28.02.2011 had allowed the claim of the assessee upholding the order of Commissioner of Income Tax (Appeals). In view thereof, as the facts and circumstances are identical to the facts and circumstances in preceding years, we uphold the order of Commissioner of Income Tax (Appeals). However, the issue decided vide present ground of appeal shall not be a precedent used by any other assessee - Decided against revenue. Addition made under section 40A(2)(a) - CIT(A) deleted the addition - Held that:- The ld. DR for the revenue has failed to controvert the findings of the Commissioner of Income Tax (Appeals) and in view thereof, we find no merit in the addition made by the Assessing Officer especially where the assessee had compared the purchase rates in respect of the items purchased from sister concern with the purchase rates of items purchased from independent parties and the tabulated details reflect the same to be on the lower side. Upholding the order of Commissioner of Income Tax (Appeals), we reject ground of appeal raised by the revenue.- Decided against revenue. Addition paid on account of bank charges - CIT(A) deleted the addition - Held that:- The facts and circumstances and the issue raised vide present ground of appeal is identical to the issue before the Tribunal in assessee's own case and following the same parity of reasoning, we uphold the order of Commissioner of Income Tax (Appeals) in allowing the relief of ₹ 22,41,628/- being bank charges paid for renewal of the working capital facilities availed by the assessee - Decided against revenue. Disallowance of building repair and maintenance - CIT(A) deleted the addition - Held that:- The Commissioner of Income Tax (Appeals) allowed the claim of the assessee holding the said expenditure to be revenue in nature. We find that the Assessing Officer has not doubted the genuineness of the said expenditure and the only issue raised by the Assessing Officer was whether the said expenditure was capital or revenue in nature. The nature of the expenditure incurred by the assessee towards maintenance of an existing asset is an expenditure towards repair and maintenance and is revenue in nature. Upholding the order of Commissioner of Income Tax (Appeals), we dismiss ground of appeal raised by the revenue.- Decided against revenue.
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