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2017 (12) TMI 655 - AT - Income TaxAllowability of claim of interest expenses u/s 36(1)(iii) - Held that:- The case of the assessee further supported by the decision of the Hon'ble Bombay High Court in case of CIT Vs. Reliance Utilities and Power Ltd [2009 (1) TMI 4 - BOMBAY HIGH COURT] wherein it has been held that if the assessee has higher non-interest bearing funds available then the non interest bearing advances, then the presumption lies in favour of the assessee that such advances are out of such interest free funds available. In the present case the total interest free shareholders fund available with the assessee is ₹ 6.16 crores whereas the total interest free loans to the companies is ₹ 61.06. lacs, loan to suppliers is ₹ 93.83 lacs and to other is ₹ 1.18 lacks. Therefore, we direct the ld AO to delete the disallowance of ₹ 1428923/-. Therefore, ground Nos. 1 to 3 of the appeal are allowed. Non granting of TDS credit - Held that:- Admittedly, the assessee did not make the claim for TDS in the return of income though offered the income of interest from which tax is deducted for taxation. Hon'ble Delhi High Court in CIT Vs. Jai Parabolic Springs Ltd [2008 (4) TMI 3 - DELHI HIGH COURT] has held that there is no prohibition on the powers of the appellate authorities to entertain the additional claim for the just decision of the case. Therefore, accordingly, we reverse the finding of the lower authorities and direct the ld AO to verify the claim of the assessee of TDS of credit and if found in accordance with the law same may be granted. In the result appeal of the assessee is allowed with above direction. Addition on account of closing stock - Held that:- In the present case the difference is of 8346 bags. On principle we agree with the findings of the lower authorities, that if a different stock in quantity is shown to the banker then in the books before the revenue authorities the balance difference is required to be added in the hands of the assessee as income. However, as the lower authorities has not given proper opportunity of reconciliation of the stock to the assessee the issue is set aside to the file of the ld Assessing Officer with a direction to the assessee to produce the quantitative register maintained before the excise authorities as stated in the reply before the ld AO before the expiry of three months from the date of the receipt of this order and reconcile the difference. The ld Assessing Officer is directed to verify the claim of the assessee and if the stock register balance with the Excise authorities and the bank are not reconciled, to that extent the addition may be made. - Decided in favour of assessee. Addition of miscellaneous expenses - Held that:- We direct the AO to delete the disallowance of ₹ 52000/- out of telephone expenditure as the above expenditure was incurred by the company for the director for official use. Accrued interest on post office saving certificate and national savings certificate - Held that:- We set aside this issue back to the file of the ld AO to compute the interest income accrued during the year and tax the same as only that much income can be said to have accrued to the assessee during the year. Accordingly, ground No. 3 and 4 of the appeal of the assessee are allowed with above direction.
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