Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 559 - AT - Income TaxDisallowance of interest u/s 36(1)(iii) - assessee had advanced the amount to its sister concerns - Held that:- The impugned advance has been made out of interest free funds available with the assessee and there was no question of whatsoever for disallowing interest 36(1)(iii) of the Act. Accordingly, we hold that the disallowance of interest u/s 36(1)(iii) pertaining to the sister concerns upheld by the ld. CIT(A) is not justified, hence, the same is deleted. Thus, the appeal of the assessee is allowed. Deduction of profit u/s 80IC - allegation of the revenue is that assessee did not have sufficient infrastructure and man power to manufacture the entire products on its own in its exempt unit and got it done as job work from units outside specified areas. - Held that:- We are of the considered view that the issue in dispute is squarely covered by the decision of this Bench of the Tribunal, in assessee’s own case for the assessment years 2005-06 to 2009-10 wherein held that no discrepancy in the books of account has been pointed out by the authorities below and each and every purchase has been backed by the vouchers and there is evidence in the shape of GRs and delivery challans for finished products of Gagret which is duly authenticated on the border of Punjab & Himachal Pradesh and this documentary evidence has been admitted by the AO and simply copies were placed. Regarding electricity charges, which have been proved by the assessee beyond any doubt and how it can be assumed that electricity charges in H.P. are far less than electricity charges in Punjab and that finding has not been rebutted by the ld. CIT(A). - Decided in favour of assessee
|