TMI Blog2012 (12) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ove-tailed with the business activity of the assessee - appeal of the Assessee is allowed - I.T.A. No.2804/Ahd/2011 - - - Dated:- 31-1-2012 - SHRI MUKUL Kr.SHRAWAT AND SHRI A.L.GEHLOT, JJ. Appellant by : Shri Nirav J.Shah Respondent by : Shri Samir Tekriwal, Sr.D.R. ORDER PER SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER : This is an appeal at the behest of the Assessee which has emanated from the order of Learned CIT(Appeals)-XVI, Ahmedabad dated 23/09/2011. Grounds raised are reproduced below:- 1. On the facts and circumstances of the case Ld. CIT(A) erred in confirming additions made by Asst.CIT, by disregarding the detailed submission and reasons given by Assessee for considering financial charge receipts as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-1) against supply order of Iron Steel materials as per Proforma invoice No.01 dtd. 17/09/07 (copy enclosed marked Annexure-2). Subsequently, Rs.5,00,08,000/- each had been given to M/s. Dev Deep Builders Pvt. Ltd. Dev Arcade Pvt. Ltd. as agreed with said M/s. Dev Deep Mall Developers Pvt. Ltd. which can be seen from letter dated 21/09/07 (copy enclosed marked Annexure-3) We also submit herewith copy of account of said M/s. Dev Deep Builders Pvt. Ltd. Dev Arcade Pvt. Ltd. which shows advances given and interest charged by us [Annexure-4]. As against advance of Rs.10,00,16,000/- a supply of Rs.1,06,70,783/- and been made upto 31/03/2008 which can be seen from copy of account enclosed [Annexure-5]. Interest earned from M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. in which it was directed to give advance to associate concerns, M/s. Dev Deep Builders Pvt. Ltd. and Dev Arcade Pvt. Ltd. Ld. AR has therefore contested that the transaction was purely a business related transaction. The assessee has received a supply order of Rs.10 crores from M/s. Dev Deep Mall and Developers Pvt. Ltd. The assessee has also received an advance of Rs.10 crores from the said concern with the condition that the assessee-firm would advance the same amount as a loan with a reasonable rate of interest to their aforementioned two associate concerns. An another argument has also been raised that as against the interest receipt, simultaneously the assessee had to pay interest on the said borrowings. Ld. AR has mentioned that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.10 crores from M/s. Devdip Malls Developers Pvt. Ltd. The assessee is in the business of trading of Iron Steels and therefore the said order from a builder was beneficial for the business of the assessee. Therefore, the argument before us is that a commercial decision was taken to advance the said amount for the benefit of the business. Hence, it is vehemently contested that the transaction was purely related to the business of the assessee, therefore the nature of income was nothing but business income . As far as the case laws cited by the ld.CIT(A) are concerned, the same are distinguishable on facts as also on legal proposition laid down therein. Neither this is a case where surplus funds have been invested nor it is case of shor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
