TMI Blog2013 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri N. K. Saini ORDER Per Mehar Singh, AM. The present appeal fi led by the assessee is directed against the order dated 29.12.2010 passed by the ld. CIT(A) u/s 250(6) of the Income-tax Act,1961 ( in short 'the Act' ). 2. In this appeal , the assessee has raised the following Grounds of Appeal: 1. That the Id Commissioner of Income-tax (Appeals) has erred in law and on the facts of the case in sustaining disallowance of ₹ 1010167/- u/s 36(1) (iii) out of interest paid and the disallowance is in any case too excessive. 2. That the Id CIT (Appeals) has failed to appreciate that the debit balances in the concerned accounts were on account of business consideration and further t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Disk India Pvt. Ltd. (5 lacs) and M/s Sonal Fabricators Pvt. Ltd. (Rs.11,20,000/- are stated to have been paid for business purpose and the cost of fabrication of tank lorry bodies. Certificate from Sonal Fabricators have also been filed. It is contended that income from these vehicles have been shown in the earlier and current year. It was, further, explained that the amount paid to them were not transferred to the relevant vehicle amount (fixed asset) as the bills for the same were, either not received or misplaced. Ld. 'DR' stated that in view of the factual position, CIT(Appeals) held that the amount of ₹ 5,11,536/-, which is advanced to Shri Anil Kumar, from time to time or imprest given to the employee for meeting out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrier 68,33,492/- 7. On considering the reply, fi led by the appellant, AO disallowed ₹ 14,32,297/-, under the head interest u/s 36(1) (iii) of the Act. 8. Ld. CIT(Appeals) , on appreciation of the submission fi led by the assessee, recorded his findings in para 5 of the appellate order. The relevant findings of ld. CIT(Appeals) are reproduced hereunder : 5. I have heard the assessee's counsel and the Assessing Officer at length and also persued the papers filed before me and also the assessment records. I find that the debit balance of ₹ 511536/- in the account of Shri Anil Kumar who is an employee was advanced from time to time for business purposes and has from time to time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cators P. Ltd. (Rs. 11,20,000/-). Since, the appellant not produced any evidence/documents in support of his claim before the A.O. during assessment proceedings. Therefore, the disallowance on these two amounts as worked out by the A.O. is confirmed. However, the disallowance of interest should be worked out for the period such amounts have been outstanding. Next coming to the debit balances in the account of Punjab Machinery Works P Ltd., (Rs.29,00,000/-) it is seen from the statement of account that the opening balance of ₹ 9,30,000/- coming forward from earlier years and no disallowance out of interest on this account was made in earlier years. However, for the amounts advanced in the current year, I do not find force in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
