9911796707
TMI Blog2014 (3) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of disallowance of broken period interest. He submitted that a similar issue involved in assessee's own case for A.Y. 2001-02 was decided by the Tribunal in favour of the assessee following the decision of Hon'ble Bombay High Court in the case of American Express International Banking Corporation vs. CIT (258 ITR 601). He submitted that in a subsequent decision rendered in the case of CIT vs. Citibank N.A. (264 ITR 18), the Hon'ble Bombay High Court following the decision of American Express International Banking Corporation (supra) again held that the broken period interest is an allowable expenditure and the SLP filed by the Department against the said decision of the Hon'ble Bombay High Court has already been dismissed by the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Rajasthan High Court in the case of CIT vs. Bank of Rajasthan Ltd. (316 ITR 391)while confirming the disallowance made by the A.O. on account of broken period interest ignoring that a similar issue has been decided by the Hon'ble jurisdictional High Court in the case of American Express International Banking (supra) which is binding on him. He contended that the assessee thus has a good prima facie case to succeed in its appeal on the main issue of broken period interest and once it is decided in favour of the assessee, it will result in refund of tax for the year under consideration instead of the present outstanding demand. He contended that it is thus a fit case to grant the stay of outstanding demand and the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the arguments of both the sides and also perused the relevant material placed on record. Having regard to all the relevant aspects of the matter including especially the prima facie case of the assessee on merit on the main issue of disallowance of broken period interest, we are of the view that the balance of convenience lies in favour of the assessee and it is a fit case to stay the outstanding demand as sought by the assessee by way of the present application. Accordingly we direct that the impugned outstanding demand against the assessee for A.Y. 2010-11 be kept in abeyance for a period of six months or till the disposal of the appeal of the assessee by the Tribunal whichever is earlier. The Registry is directed to post the said appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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