9911796707
TMI Blog2012 (12) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is aggrieved by the disallowance of business loss including transaction backed delivery as non-genuine in nature. 3. At the very outset, the learned Counsel, on behalf of the assessee, submitted that this issue stands covered in favour of the assessee by the decision of a co-ordinate bench of the Tribunal in assessee's own case for assessment years 2001-02, 2003-04 and 2004-05. Learned Departmental Representative, on the other hand, did not dispute this fact. 4. After going through the order passed by the Tribunal for assessment years 2003-04 and 2004-05 in ITAs no.975 & 976/Mum./2008, vide order dated 25th November 2009, we find that this issue has been decided in favour of the assessee by following the order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase for assessment year 2001-02 and allow ground no.2, of the assessee." 5. Thus, following the aforesaid decision of co-ordinate bench of the Tribunal, we set aside the impugned order passed by the learned Commissioner (Appeals) and decide ground no.1, in favour of the assessee. 6. In ground no.2, the assessee challenged the disallowance of interest of Rs. 1,21,79,721. This issue has also came up for consideration by the Tribunal in earlier years in assessee's own case for assessment years 2001-02, 2003-04 and 2004-05. 7. After carefully going through the decision, we find that the Tribunal in ITAs no. 975 & 976/Mum./2008 (supra), decided the issue after following the earlier year's order for assessment years 2001-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. Similar view has been expressed by the Tribunal in Mini Muthootu Mutual funds Ltd. in 6 SOT 820 (Bang). The Tribunal has observed that promoters of the sister concerns were the same and to protect and retain business reputation and credibility and commercial expediency, the assessee advanced money to them free of interest, the disallowance was not justified in view of nature of business of the assessee, especially when the first appellate authority had clearly found that the assessing authority had not anywhere in the order established the nexus of the borrowed fund and the diversion to the sister concern. 19.1 In the present case also, as stated above, the funds were given to its sister concerns for the purpose of business expediency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een repaid from the loan taken from of Foolchand & Sons. Similarly in the case of C.J.Dalal it can be seen that in the earlier financial year 2001-02 the assessee received certain amounts and utilized the same for repayment of loans taken from KVP. Thus in this case also the borrowing were in the earlier assessment. year and the utilization of these loans were also done in the earlier assessment year and the Tribunal on consideration of these facts had allowed the claim of the assessee. Consistent with the view taken therein, we direct the Revenue to allow the claim of interest made by the assesse." 8. Thus, in view of the aforesaid decision, we set aside the impugned order passed by the learned Commissioner (Appeals) and allow ground no.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal held that even if such an interest has not been provided in the accounts, there is no dispute that liability is there, the same can be allowed. 12. On the other hand, the learned Departmental Representative relied upon the findings of the learned Commissioner (Appeals). 13. After considering the rival submissions and after perusing the co- ordinate bench decision in Chat Computer Pvt. Ltd. v/s DCIT in ITA no.4818/ Mum./2007, order dated 30th December 2010, we find that this issue has been decided in favour of the assessee after observing and holding as follows:- "6. We have considered the rival contentions and examined the record. A far as borrowals of funds are concerned the borrowals have taken place in earlier years and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no denial of the fact that assessee has borrowed funds and interest for the whole year has to be allowed as deduction, not providing the amount in the P & L Account but quantifying in the notes to the account does not prevent the assessee in claiming the amount as an allowable deduction in its computation of income. The amount is allowable both on facts and on law. Not only that similar claim was also made for AY 2001-02 by the assessee wherein the assessee has provided for an amount of 6.66. crores in the books of account and claimed an interest of 5.02 crores in the computation of income in the same way as was done for this assessment year. The A.O. even in the reassessment under section 143(3) r.w.s 147 for A.Y. 2001-02 dated 15.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
