TMI Blog2015 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... rs 2005- 06, 2006-07 and 2008-09 in which no such disallowance has been made by the Revenue Authorities. Even otherwise, the Revenue has not produced any documentary evidence establishing that the business of the assessee is not genuine and the transactions is also sham. Thus CIT(A) has passed a well reasoned order on the basis of the assessment orders passed u/s. 143(3) of the Act for the previous as well as in the subsequent assessment years, wherein no such disallowance has been made by the Revenue Authorities. - Decided against revenue. - I.T.A. No. 3928/DEL/2011 - - - Dated:- 12-1-2015 - SHRI H.S. SIDHU AND SHRI T.S. KAPOOR, JJ. For The Department : Sh. Vikram Sahay, Sr. DR For The Assessee : S h. V.K. Jain, CA ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. He further observed that assessee has also advanced unsecured loan to another sister concern, M/s Jaipuria Beverages Food Industries Pvt. Ltd. on which it has earned interest @10% which works out to ₹ 56,72,979/- for the year under consideration. The AO has observed that there is no justification for the assesee in paying the interest @10% and earning interest @10% without deriving any profit in the transaction. The AO has also observed that the asessee has only passed off loan received from one sister concern to another. The AO has accordingly held that the above transaction to be sham and has rejected the books of accounts of the assessee and has disallowed the difference between the interest received and interest paid a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his impugned order. For the sake of convenience, we are reproducing the aforesaid relevant paras as under:- 5.1 I have carefully considered the assessment order and the submission made by the Ld. AR. As per the assessment order, the appellant has taken unsecured loan from sister concern, M/s Pearl Beverages Ltd. on which it has paid interest @ 10% which works out to ₹ 82,75,818/- for the year under consideration. The appellant has also advanced unsecured loan to another sister concern, M/s Jaipuria Beverages Food Industries Pvt. Ltd. on which it has earned interest @ 10% which works out to ₹ 56,72,979/- for the year under consideration. The AO has observed that there is no justification for the appellant in paying intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of bank statements, copy of audited Balance Sheets and copy of Income Tax Returns before the AO duly reflecting the above transactions. It is accordingly argued that there is no basis for rejecting the books of accounts and disallowing the net interest expenditure. It is also argued that the appellant is regularly engaged in the above business and no such disallowance has been made in any preceding or succeeding years by the AO. The Id. AR has also filed a copy of scrutiny assessment orders u/s 143(3) for A.Y. 2005-06, 2006-07 and 2008-09 in the case of the appellant wherein no such disallowance has been made. On careful examination of the matter, I find that the disallowance made by the AO is misconceived and without any basis. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue Authorities. Even otherwise, the Revenue has not produced any documentary evidence establishing that the business of the assessee is not genuine and the transactions is also sham. Keeping in view of the facts and circumstances of the case as explained above, we are of the considered view that Ld. CIT(A) has passed a well reasoned order on the basis of the assessment orders passed u/s. 143(3) of the Act for the previous as well as in the subsequent assessment years, wherein no such disallowance has been made by the Revenue Authorities. Therefore, no interference is called for in the well reasoned order passed by the Ld. CIT(A), hence, we uphold the same by dismissing the appeal of the Revenue. 7. In the result, the Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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