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TMI Blog2013 (10) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... convenience are taken from the case of M/s. Delta International in ITA No.5340/M/2011. ITA No.5340/M/2011. 2. This appeal has been directed against the order of the CIT(A) dated 25.4.2011. Ground Nos.1 to 3: Ground Nos. 1 to 3 relate to disallowance of discounting charges/ interest of Rs.46,32,752. Briefly stated the facts of the case are that the original assessment in this case was completed, making addition, inter-alia, of Rs.46,32,752/- on account of discounting charges/interest. When the matter finally came up before the Tribunal, the Tribunal vide order dated 28.11.2006 passed in ITA No.639/M/2004 restored the issue to the file of A.O. with a direction to examine as to whether such discount/interest was incurred by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet 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 on 24.11.2006 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 A.O. on 18.12.2006 after filing of the above referred documents by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll money. This issue was also restored by the ITAT to the AO for fresh examination. 5. In the restored proceedings, assessee submitted requisite details and demonstrated that the interest was paid in the course of business. The interest on call money was paid in respect of shares held as stock-in-trade and, therefore, allowable as business expenditure. However, AO did not appreciate the submissions of the assessee and repeated the addition originally made in the assessment. Aggrieved with the above, assessee filed an appeal before the first appellate authority. 6. During the proceedings before the ld. CIT (A) in the second round, assessee submitted that the impugned interest expenditure was paid on unpaid call money, which is incidental t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the cited decision of Hon'ble jurisdictional High Court in the case of Smt. Nirmala M. Doshi vs. CIT (supra) revealed that the claim of assessee is certainly allowable in favour of the assessee. The said judgment is relevant for the proposition that the payment of interest on the amounts of the call money stands in the same footing as payment of like interest in the same amount, therefore, such interest constitutes revenue expenditure. Considering the above, we are of the opinion that the order of the CIT (A) is reasonable and it does not call for any interference. Accordingly, grounds raised by the Revenue are dismissed." 9. Ld. DR has not brought before us any distinguishable fact which may justify departure from the findings of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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