TMI Blog2013 (12) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2006-07, which have been filed against the order of learned CIT(A) dated 8.2.2011. 2. In Revenue's appeal vide ground Nos. 1 to 3 only one issue has been raised. The assessee firm derives income from activities of manufacturing of rollers for bearings. For the assessment year under consideration, return of income was filed on 21.1.2006 disclosing 'nil' income. Subsequently, a revised return was filed on 27.10.2007 declaring 'nil' income. As against which assessment was completed u/s 143(3) on 19.12.2008 after adjustment of brought forward losses of earlier years amounting to Rs. 87,21,793/- and unabsorbed depreciation amounting to Rs. 35,19,920/- at 'nil' total income. As per the computation of total income, the assessee claimed deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existing business in which the finished goods of the assessee company are used as raw materials and thus the advances were given in the interest of the business of the assessee company. In this regard, reliance was placed on the decision of the Hon'ble Supreme Court rendered in the case of S.A. Builders Ltd. reported in 206 ITR 631 (SC). Regarding other advances, it was submitted that advances were given from out of the profits earned by the assessee during the year under consideration and not by diverting funds borrowed from the bank. It was asserted that the assessee company had sufficient funds on account of share capital, and the reserves and the surpluses after reducing the debit balances of profit and loss during the relevant year, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the month of November 2005, has been shown, it was stated that the advances was given for the purpose of carrying on work of carpentry for the interest of the business. In respect of other loans given to Rishiraj Filaments, Shri Shantilal Vyas, Shri Chandra Sagar Kumbhat and K.D. Motors, similar contentions were raised and the learned CIT(A) has directed the Assessing Officer to rework disallowable interest Accordingly. 5. Before us, similar arguments were taken from both the side. We have gone through the entire record. In fact, we have tried and grappled with the facts and figures available both in the Assessing Officer's order and that of CIT(A)'s order. Both of them have intermingled facts and issues in such a manner that it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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