Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 737 - AT - Income TaxAddition u/s 68 - CIT(A) allowed claim - Held that:- DR could not point out any infirmity in the order of the ld CIT(A), therefore in view of this we confirm the finding of the ld CIT(A) in deleting the addition u/s 68 after obtaining the proper details which proves the identity, creditworthiness and genuineness of the transactions. - Decided in favour of assessee. Disallowance of interest expenditure - Held that:- A.O. has taken the view that the appellant has not utilized the borrowed funds for the purpose of the business and the advance given was more than the borrowed funds. This cannot be a justified basis for disallowance of the interest claim in the light of the fresh advance received from the customers and the fresh unsecured loans. The total advance received and unsecured loans of ₹ 40323252/- in itself is sufficient evidence to established that the complete advance given of ₹ 40022398/- was financed through such advance and unsecured loan Accordingly the contentions and the submission of the counsel of appellant has strong a acceptance. The A.O. has not considered the advance from customer and unsecured loan received by the appellant during the year which financed the source of the advances given. Thus disallowance need to be rejected - Decided in favour of assessee.
|