TMI Blog2015 (9) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... URT ] no disallowance u/s 14A can be made in the hands of the Assessee. - Decided in favour of assessee. Disallowance of expenditure of interest paid on loans taken at interest and advances to sister concerns without charging any interest - CIT(A) deleting the addition - Held that:- As it is noticed that the advances to the associates has actually reduced during the relevant assessment year when compared to the earlier assessment year, it shows that these advances were of the earlier years and substantial portion of the advances have been returned. Admittedly, there is no disallowance on this count in the earlier year also. In the circumstances, following the principles of consistency, no disallowance can be made for this year also in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a right footing and does not call for any interference - Decided in favour of assessee. - ITA Nos. 321 & 426/PNJ/2014, CO No. 43/PNJ/2014 - - - Dated:- 9-7-2015 - N. S. Saini, AM And George Mathan, JM,JJ. For the Appellant : Sandip Bhandare, CA For the Respondent : B Balakrishna, Ld. DR ORDER Per : George Mathan 1. ITA No. 321/PNJ/2014 is an appeal filed by the Revenue against the order of ld. CIT(A), Hubli in ITA No. CIT(A)487/HBL/2011-12/AY 2009-10 dt. 30.5.2014 for the A.Y 2009-10 and CO No. 43/PNJ/2014 is the Cross objection filed by the Assessee in the Revenue's appeal. ITA No. 426/PNJ/2014 is an appeal filed by the Revenue against the order of the ld. CIT(A), Panaji in ITA No. 142/PNJ/13-14 dt. 24.9.2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Assessee u/s 14A. 4. We have considered the rival submissions. We have also perused the Balance-sheet of the Assessee found at pages 59 to 69 of the paper book. It is noticed that the investments are carry forward investments right from 2008-09. There is no new investment during the relevant assessment year. The assessment order for the A.Y 2008-09 was also found at pgs. 81 to 84 of the paper book, in which also there is no disallowance made u/s 14A. Further, it is noticed that the Assessee does not have any exempt income much less dividend income. Consequently, we are of the view that in view of the decision of the Hon'ble Bombay High Court in the case of Delite Enterprises as also the decisions of the Hon'ble Allahabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, following the principles of consistency, no disallowance can be made for this year also in view of the decision of the Hon'ble Karnataka High Court in the case of Sridev Enterprises reported in 192 ITR 165. Thus, ground no. 3 raised by the Revenue stands dismissed. 8. In respect of ground no. 4 it was submitted by the ld. DR that the issue was against the action of ld. CIT(A) in reducing the disallowance of interest paid to the partners and relatives by invoking the provisions of Sec. 40A(2) of the Act. It was the submission that in the course of the assessment it was noticed that the Assessee was paying interest on borrowed funds ranging from 18% to 24% to the partners, relatives and persons who are covered u/s 40A(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... villas by following the completed contract method, it was fairly agreed by the ld. DR that the Assessee has offered the same in the subsequent assessment year. Further, the ld. AR submitted that the Assessee has been consistently following the completed contract method right from the beginning. It was also mentioned that the Hon'ble Bombay High Court in the case of V.S. Dempo Co. Pvt. Ltd. reported in 131 CTR 203 has held that the completed contract method is an acceptable method and that consistency is to be followed. 12. We have considered the rival submissions. As it is noticed that the ld. CIT(A) has followed the decision of the Hon'ble Bombay High Court in the case of V.S. Dempo Co. Pvt. Ltd. referred to supra, as also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be able to do any verification in respect of the genuineness of the expenditure claimed representing the brokerage. 16. In reply, the ld. AR did not raise any serious objection. Consequently, the direction given by the ld. CIT(A) in respect of the issue of disallowance of brokerage which read as follows However, the A.O is directed to allow the brokerage expenses in the year in which corresponding income is offered for taxation. stands deleted. The AO shall conduct necessary verification and examination of the details in respect of the brokerage payments, if any, claimed by the Assessee when the Assessee sells the villas. In the circumstances, ground nos. 2 2A of the Revenue's appeal stands partly allowed. 17. In respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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