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2019 (4) TMI 1990 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) - assessee has submitted that the term loans were taken for specific purposes and the term loans taken for machinery were duly capitalized till the machinery was put to use. That there was no other borrowed funds with the assessee - HELD THAT:- The matter is required to be restored to the file of the Assessing officer to duly consider the aforesaid contention of the assessee, examine the details of the finances available with the assessee vis-a-vis amount capitalized by the assessee and decide the issue afresh in the light of the decision of the Hon'ble Supreme Court in the case of ‘CIT (LTU) Vs. Reliance Industries Ltd.’ [2019 (1) TMI 757 - SUPREME COURT] - The orders of the lower authorities are set aside and the matter is remanded to the Assessing officer to decide the issue afresh as per the observations made above. Disallowance of expenditure - addition of the Diwali Expenses, Gardening expenses, Printing & Stationery and website promotion expenses on the ground that the same were not properly vouched - HELD THAT:- For nature of the expenditure i.e. as ‘Diwali expenses, gardening expenses, printing and stationary and website promotion expenditure’ incurred which are usually incurred in day to day business activity and also considering the smallness of the amount and further submissions of the assessee that most of the expenditure were paid through account payee cheques, we do not find any justification on the part of the lower authorities in making the disallowance in respect of the aforesaid expenditure - Appeal of the assessee is treated as allowed.
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