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2022 (8) TMI 1479 - ITAT RAJKOTAddition on account of warehouse rent being excessive - payment to persons covered u/s 40A(2)(b) and not expedient to business expenditure - CIT(A) deleted addition - HELD THAT:- Disallowance on account of warehouse rent being excessive payment was rightly deleted by the CIT(A) as the assessee has given the details related to warehouse expenditure on rent thereby filing the details of related to entry/payment of the corresponding receipts along with cheques. CIT(A) has taken cognisance of the same referring to the bills and invoices towards warehouse rent and recipient as party has already paid due tax thereon. Therefore, ground of Revenue’s appeals are dismissed. Addition on account of interest payment u/s. 36(1)(iii) - CIT(A) deleted addition - HELD THAT:- CIT(A) has rightly observed that CFS bill account shows that sizable amount of payables by the assessee to GFPL, thus the assessee was having sufficient fund and the assessee has established the nexus between the interest-free advance and the interest-bearing loans. The books of account of the assessee also show this fact. In fact, the assessee earned positive income of more than Rs.5 Crores which in any case should necessarily be considered available for making interest-free advances. As per observation of the CIT(A) the deployment of fund available with one concern of the group for the purpose of business has been taken into account while deleting this addition by the CIT(A). There is no need to interfere with the same and hence ground no.2 of Revenue’s appeal dismissed. Addition on account of Repairs & Maintenance - CIT(A) deleted addition - HELD THAT:- The payments were made after deducting TDS. The parties directly confirmed the said charges while replying notice u/s 133(6) of the act. Thus, the Assessing Officer has totally ignored the evidences placed before him and, therefore, the CIT(A) rightly deleted this addition.
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