TMI Blog2012 (9) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... :- Since the payments have already been paid, provisions of section 40(a)(ia) are not applicable. Addition is directed to be deleted. See ACIT V. Merilyn Shipping & Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) - Decided in favor of assessee - ITA No. 525/Chd/2012 - - - Dated:- 27-6-2012 - SHRI T.R. SOOD, AM Ms. SUSHMA CHOWLA, JJ. Appellant by: Shri Atul Mendher Respondent by: Shri N.K. Saini ORDER PER T.R. SOOD, A.M In this appeal the assessee has raised following three grounds out of which ground No. 1 was stated to be of general nature and therefore, does not require separate adjudication. Other grounds are as under: "2 That the ld. CIT(A) has been unjustified in partly upholding the order of Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), it was stated that the advances to Shri Ashok Anand and Mrs. Raj Rani Anand were for purchase of fixed assets and other advances were for raw material. However, since no evidence was filed before the ld. CIT(A), the action of the Assessing Officer was confirmed by the ld. CIT(A). 4. Before us, the ld. counsel of the assessee submitted that the advance to M/s Pamvi Tissues Ltd was basically for purchase of fixed assets and filed copy of sale deed, therefore, at least this advance should be construed for business purposes. He fairly admitted that since the assessee has no explanation for other advances the same may be treated as covered by the principles laid down by Hon'ble Punjab Haryana High Court in case of CIT V. Abhishek Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid for borrowings for the purpose of purchasing of such land is not allowable. As far as other items are concerned, it was stated that no business purpose is there and the same is covered by the decision of Hon'ble Punjab Haryana High Court in case of CIT V. Abhishek Industries (supra). In these circumstances we uphold the order of the ld. CIT(A) and confirm the addition on account of interest disallowance. 7. Ground No. 3 - After considering the rival submissions we find that the Assessing Officer noticed that the assessee has paid various sums to a few firms on account of repair and maintenance but no TDS was deducted. Therefore, the Assessing Officer invoked the provisions of section 40(a)(ia) of the Act and made addition on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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