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2019 (5) TMI 619 - AT - Income TaxAllowability of advance write off - business loss on account of advances toward audio rights to Karishma International as irrecoverable - HELD THAT:- Assessee need to put all the facts of the case in proper perspective before the authorities below surrounding this write off of ₹ 20 lacs and authorities below are also directed to appreciate the facts in proper perspective after considering all the details to arrive at conclusion that this can be allowed as business loss or not. Thus, keeping in view our detailed discussions as above, we are of the considered view that matter need to be restored to the file of the AO for denovo assessment. Disallowance u/s. 36(1)(iii) - expenditure on account of interest paid on term loans and other loans - AO rejected the contention of the assessee that free reserves were utilised for giving said interest free rent deposit - alleged to utilised the interest bearing funds to advance the interest free rent deposits - HELD THAT:- perusal of audited financial statements for all these years clearly reveals as detailed above that the availability of interest free funds with the assessee were much higher than interest free refundable rent deposit of ₹ 9 crores advanced by the assessee and in the absence of any cogent material inextricably linking interest bearing borrowings with the interest free refundable rent deposit granted by the assessee, the presumption will apply that the assessee has released the interest free refundable rent deposit out of interest free funds available with it. The decision of Hon‟ble Bombay High Court in the case of Reliance Utilities and Power Limited [2009 (1) TMI 4 - BOMBAY HIGH COURT] is relevant. - Decided in favour of assessee Expenditure incurred towards audio rights - nature of expenditure - revenue or capital - HELD THAT:- No distinguishing facts are brought on record by both the rival parties in the year under consideration before the Bench vis-a-vis facts as were there in preceding years. Further, no judgment of Superior Court is brought on record by both the rival parties holding against the assessee. Thus, we have no reason to take a different stand than what was taken by tribunal consistently over preceding years in assessee‟s own case. Respectfully, following the decision of tribunal for AY 2010-11 [2018 (8) TMI 1802 - ITAT MUMBAI] , we hold that the expenditure incurred by the assessee in acquiring audio rights are revenue expenses and learned CIT(A) appeal has rightly deleted the additions as were made by the AO.
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