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2016 (1) TMI 902 - AT - Income TaxDisallowance on account of business promotion expenditure - CIT(A) deleted the disallowance - Held that:- The major portion of the expenses i.e. ₹ 7,88,883/- pertains to expenses incurred abroad and foreign travel. This disallowance has already been deleted and the Assessing Officer is not in appeal. As regards balance amount of ₹ 3,82,937/-, the ld. CIT(A) has already confirmed the disallowance to the extent of ₹ 1,00,000/- in respect of element of personal expenses, yet the Assessing Officer is in appeal. There is no material, however, to show that the personal expense incurred in the credit card statement exceeds the amount of disallowance which has been confirmed by the ld. CIT(A). In our considered view, action of the ld. CIT(A) seems to be reasonable and it does not call for any interference in the matter, particularly in the absence of any material having been brought on record to show that the disallowance confirmed by the ld. CIT(A) is inadequate or unreasonable. We, therefore, uphold the action of the ld. CIT(A) and decline to interfere in the matter. - Decided against revenue Disallowance on account of interest expenses - assessee itself had agreed that the advances are made out of loan from HDFC Bank (interest bearing fund) - CIT(A) deleted the disallowance - Held that:- as noted by the ld. CIT(A), the assessee has share capital of ₹ 2,97,21,600/- and accumulated profit to the extent of ₹ 2,20,75,710/-. Clearly, therefore, the assessee has sufficient non-interest bearing funds which covers more than the interest free advance of ₹ 45,00,000/- to its director. In view of this factual position and in the light of Hon'ble Bombay High Court's judgement in the case of CIT vs. Reliance Utilities [2009 (1) TMI 4 - HIGH COURT BOMBAY ], which holds that as long as sufficient interest free funds are available to an assessee, no disallowance can be made in respect of interest free advances given by the assessee. To that extent, we approve the action of ld. CIT(A) and decline to interfere in the matter.- Decided against revenue
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