Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1972 - AT - Income TaxDisallowance of proportionate interest on borrowed funds @ 12% - assessee has not been able to establish that the funds were transferred to its sister company for the purpose of business - as per AO assessee is taking two different stands i.e. initially it was stated that the advance was given for the purpose of construction of a hospital and subsequently, it was stated that the advance was given with an intention to acquire shares in demerged company - HELD THAT:- On perusal of MoU between the assessee and USAIPL, we find that there is a clause that the assessee shall acquire the shares of the demerged company. Assessee stated that the assessee could not acquire the equity shares initially because at that point of time the demerger of the said company has not yet taken place and on demerger, assessee had acquired the shares of the company, for which, he filed copies of the documents showing shareholding of the Kamineni Health Services Pvt. Ltd. We find that the documents filed before us by the assessee, as additional evidence, go to the root of the matter and in the interest of justice, we admit the same and remit the issue to the file of the AO for de-novo consideration. Needless to say that the assessee shall be given fair opportunity of hearing in the matter. Appeal of the assessee is treated as allowed for statistical purposes.
|