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2018 (4) TMI 697 - AT - Income TaxDisallowance of loan processing charges - CIT-A allowed the claim - Held that:- CIT(A) allowed the deduction claimed by the assessee on the ground that the assessee availed loan of ₹ 75 lakhs + ₹ 55 lakhs + ₹ 60 lakhs totaling to ₹ 1.9 lakhs from Corporation Bank for which the bank charged 1% of the loan towards loan processing charges and these amounts were charged on 28.04.2010, 18.09.2010 and on 16.03.2010 and all three dates fall within the year under consideration and the loan was also in the nature of cash credit. He accordingly allowed the claim of deduction. We find no infirmity in the same especially when assessee has availed cash credit from the bank and bank charged processing charges during the impugned assessment year. - Decided against revenue Disallowance of expenses u/s 14A read with Rule 8D - Held that:- assessee has not received any dividend income during the year could not be controverted by the Revenue. Therefore, we find no infirmity in the order of the ld. CIT(A) deleting the disallowance u/s 14A r.w. rule 8D on the ground that the assessee has not earned any exempt income during the year. - Decided against revenue Addition on account of repairs and maintenance u/s 37 - Held that:- We find the assessee has shown rent receipt of ₹ 2,12,50,000/-. Therefore, it is not coming out clearly from the order of the ld. CIT(A) as to how he arrived at the conclusion that the repair and maintenance expenses related to the new premises at Ajmol Khan Road, Karolbagh. Since the factual details are not coming out clearly, therefore, considering the totality of the facts of the case, we deem it proper to restore this issue to the file of the Assessing Officer with a direction to adjudicate this issue afresh. Disallowance made by the Assessing Officer u/s 40A(2)(b) under the head salary - Held that:- No infirmity in the order of the ld. CIT(A) as he has given justifiable reasons while deleting or sustaining the disallowance u/s 40A(2)(b) made by the Assessing Officer. He has considered the qualification of the concerned persons and the nature of job/responsibility of each of the persons and accordingly he has come to a conclusion that the salary paid to Aradhana Mehra, Roshni Mehra and Pawan Mehra are justified where the salary paid to remaining persons are not justified. We do not find any infirmity in the finding given by the ld. CIT(A) on this issue. Accordingly, the order of the ld. CIT(A) is upheld and the ground raised by the Revenue and the assessee is dismissed. Addition to interest paid to the specified persons as per the provisions of section 40A(2)(b) - Held that:- So far as disallowance of interest on advances paid to Mehra Sons Jewelers Pvt.Ltd., Namita Mehra and Sakshi Mehra are concerned, the ld. CIT(A) has given a categorical finding that these advances are for business purpose or salary advance for which no disallowance of interest is called for. So far as advances to other parties are concerned, ld. CIT(A) has given a finding that the assessee could not substantiate with evidence regarding the justification of diversification of interest bearing funds for which he sustained the disallowance of interest. Under these circumstances and in view of the detailed reasoning given by the ld. CIT(A) on this issue, we find no infirmity in his order on this issue
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