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2022 (7) TMI 1076 - AT - Income TaxDisallowance of interest interest paid to Bank of Baroda and Andhra Bank - purpose of advances given - HELD THAT:- Issue is same as in the AY 2014-15 [2018 (5) TMI 799 - ITAT DELHI] The Tribunal in its order (supra) has recorded the finding that sum given as advance to Gaursons Realtech Pvt. Ltd. was for the purpose of the acquisition of the land and sum deposited as share application with Gaursons Realtech Pvt. Ltd. was for the purpose of the business of the assessee company and therefore, interest applicable to these advances cannot be disallowed. Moreover, it is the contention of the assessee that the Revenue has not established any nexus between the borrowed funds and interest free advances to the related party. The impugned disallowance of interest is entirely based on the assessment order of the preceding AY 2014-15. Not only this, no finding has been recorded by the Ld. AO that the money borrowed has been utilised by the assessee company for purposes other than its business. It has been brought to our notice that the Revenue had gone in appeal before the Hon’ble High Court of Delhi against the order of the Tribunal for AY 2014-15 in the case of the assessee and Hon’ble High Court [2020 (2) TMI 1099 - DELHI HIGH COURT] upheld the order of tribunal observing there were sufficient interest- free funds available with the assessee, allowing them to advance the loans in question. Thus, the Tribunal, in our view was correct in concluding that it could not be said that it was the interest-bearing loan obtained from Bank of Baroda and Andhra Bank which had been advanced as interest-free loan to M/s Gaursons India Ltd. Thus we hold that the appeal of the Revenue on the issue is without any substance. The Ld. CIT(A) was perfectly justified in deleting the impugned disallowance. We uphold the order of the Ld. CIT(A) on the point and reject ground No. 1 and 2 of the Revenue. Delayed deposit of employee’s contribution towards Provident Fund - violation of the provision of section 36(1)(va) of the Act and CBDT Circular No. 22/2015 dated 17.12.2015 - HELD THAT:- As relying on Aimil Ltd. [2009 (12) TMI 38 - DELHI HIGH COURT] where the assessee company made payment of employee’s contributions to Employee’s Provident Fund (EPF) after due date of payment under EPF Act but before date of filing of return, the assessee company would be entitled to deduction of such payment. We, therefore, endorse the findings of the Ld. CIT(A) and decide the issue against the Revenue
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