TMI Blog2014 (2) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 - - - Dated:- 7-2-2014 - Shri G. C. Gupta And Anil Chaturvedi,JJ. For the Petitioner : Shri K. H. Shah For the Respondent : Shri J. P. Jhangid, Sr. DR ORDER Per G. C. Gupta, Vice-President : These three appeals by the assessee for the assessment years 2007-08, 2008-09 and 2009-10 are directed against the orders of the CIT(A). These are being disposed of with this consolidated order. ITA No.2361/Ahd/2010 (Asstt.Year 2007-2008) 2. The ground nos.1 and 2 of the assessee are as under: "1. In not appreciating the facts that the addition made in reference to interest payment of Rs.13,15,697/-. It is prayed that in view of the facts and circumstances of the case, there is no justification for confirming the aforesaid d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est decision of the Hon'ble Gujarat High Court in CIT Vs. Raghuvir Synthetics Ltd., Tax Appeal No.829 of 2007 dated 5.12.2011. The learned DR has opposed the submissions of the learned counsel for the assessee. He submitted that in the earlier assessment year 2005-06, the Tribunal has decided the issue against the assessee and that the interest free advances were old right from the assessment year 2005-2006, and therefore, they could not be out of reserves and surplus with the assessee. He relied on the orders of the AO and the CIT(A). The learned counsel for the assessee, in his rejoinder, submitted that in the earlier assessment year 2005-06, reserves and surplus were not sufficient and this plea was taken by the assessee before the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were old and were continuing right from the assessment year 2005-06, is not decisive to the issue, and if the amount of reserve and surplus available with the assessee is more than the interest free advances, during the relevant period, no case of disallowance out of interest could be sustained, even if, the interest free advances were continuing from earlier years. We direct accordingly. 5. The ground no.3 of the assessee is as under: "3. In confirming the disallowance to the extent of Rs.41,076/- as per CIT(A) order page 4 para 3.1. It is prayed that as per the submission made before CIT(A), his order page 5 para 3.2 in view of the various judicial pronouncement in reference to sec.41(1), the disallowance made is required to be delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Ahd/2012 (Asstt.Year 2009-2010) 9. The only ground of the appeal of the assessee is as under: "1. In confirming the disallowance made by the AO at Rs.8,10,476/-. It is prayed that in view of the facts and submissions made before CIT(A) dated 25.7.2012 along with paper book pages 1 to 94, he ought to have deleted the said disallowance and it is prayed that the appeal of the assessee may please be allowed." 10. Both the parties before us submitted that facts of the case are identical for this year with the facts of the case of the assessee for the earlier assessment year 2007-2008. We have considered rival submissions. In view of our decision in restoring the issue to the file of the AO in earlier assessment year 2007-08, for the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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