Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 549 - AT - Income TaxDisallowance of interest expenditure u/s 36(1)(iii) - allegation to use interest bearing fund in respect of capital work-in-progress - proof of interest free funds available with the assessee in the shape of share capital, reserves and surplus - HELD THAT:- A perusal of the order of the ld.CIT(A) would indicate that the ld.CIT(A) has not recorded any finding rather simply relied upon the order of the CIT(A) in the Asstt.Year 2013-14. This order did not meet approval of the Tribunal in the Asstt.Year 2013-14. The Tribunal has allowed the appeal of the assessee and deleted the disallowance considering interest free funds available with the assessee in the shape of share capital, reserves and surplus, as well as net revenue from operations, we are of the view that alleged investment in WIP could be assumed as carried from these surplus funds. No notional interest ought to be calculated for capiialization. In order to fortify ourselves, we would like to refer to the decision of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities & Power Ltd.[2009 (1) TMI 4 - BOMBAY HIGH COURT] - Decided in favour of assessee.
|