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2018 (2) TMI 175 - AT - Income TaxDisallowance on account of interest expenses claimed on bill discounting charges - assessee had sufficient fund to meet this business requirement which was instead used by the assessee for making interest free advance to its related parties - Held that:- CIT(A) has passed a detailed order listing therein the full sequences of events and how the bills have discounted and payments were made to sundry creditors. We are in agreement with the conclusion drawn by the CIT(A) that the AO has taken an overall view of the matter and disallowed the interest charge in arbitrary manner without application of mind. In our opinion the order of the CIT(A) is correct and deserves to be upheld. - Decided against revenue Disallowance on account of brokerage paid for getting the credit facility from nationalized banks - assessee could not establish the identity of the party and genuineness of transaction - Held that:- A perusal of the order of the CIT(A) reveals that confirmation from the recipient M/s. Avias Corporate Services Pvt. Ltd. was produced before him. The learned CIT(A) also recorded a finding of fact that the bill is towards the credit facilities arranged from IOB and thus the payment was made in connection with professional services for obtaining credit facility. It was also noted by the CIT(A) that TDS has been deducted and the payment was made through banking channels. Having perused the facts on record and after hearing both the parties, we find that the learned CIT(A) has taken a correct view of the matter which deserves to be upheld - Decided against revenue
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