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2015 (10) TMI 583 - AT - Income TaxDisallowance of discounting charges/ interest - FAA held that the assessee was not entitled to claim interest as loan was diverted to sister concern without charging interest - Held that:- While deciding the appeal for assessment year 1998-99 [2015 (10) TMI 581 - ITAT MUMBAI] the Tribunal decided the issue stating that first letter of the assessee in the fresh proceedings by which it furnished Fund flow statement, Balance sheet and profit and loss account for the year in question and for the earlier year, details of discount charges paid, statement of account, parties in support of receipt payment of discounting charges, copies of account of parties tracing the original funds, user of funds and repayment of charges with discounting charges etc. Another letter was filed before the Assessing Officer producing complete books of account, details of finance charges paid with bifurcation of parties and rate of interest and a copy of assessment order passed by the A. O. for the preceding year in which similar deduction was allowed. The present assessment order was passed by the AO after filing of the above referred documents by the assessee. It is surprising that the Assessing Officer did not make a whisper, in the assessment order of such details having been filed by the assessee - What to talk of adversely commenting, the A. 0. even did not bother to incorporate or discuss such facts in the assessment order. On the appreciation of the entire material /evidence placed by the assessee before the A. O. in the fresh round of proceedings, the learned CIT(A) has recorded a categorical finding that these expenses were incurred during the course of business. Apart from relying on the assessment order, the learned Departmental Representative could not controvert the findings given by the learned CIT(A) in support of the grant of deduction. We, therefore, uphold the impugned order in deleting the said addition. Also see case of Delta International & East West Corporation and other group concerns wherein the Tribunal had decided the identical issue in favour of the assessee[2013 (10) TMI 919 - ITAT MUMBAI] - Decided against revenue.
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