TMI Blog2015 (10) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... is not been disputed that the assessee received an amount of ₹ 38,50,000/- as interest free loans from various parties and the interest free advances have been given to a lesser extent of ₹ 32,30,000/-. There is no allegation that the loan bearing funds were directly diverted to sister concern. In these circumstances, we see no infirmity in the order of CIT (A) which is upheld - Hon’ble Delhi High Court judgment in the case of Bharti Televenture [2011 (1) TMI 326 - DELHI HIGH COURT] is applicable to assessee’s case and factually there being no diversion of interest bearing funds - Decided against revenue. - I.T.A.No.2224/Del/2013 - - - Dated:- 31-3-2014 - SHRI R. P. TOLANI AND SHRI T. S. KAPOOR, JJ. For The Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses, the bills thereof here called for. The Assessing Officer found that the bills were not in the name of assessee and as per transfer memorandum filed by the assessee for factory premises were transferred in the assessee s name only after the end of the Financial Year. The Assessing Officer observed that at Noida Unit, the assessee has shown sales of ₹ 38,10,515/-, whereas the electrical expenditure has been claimed at ₹ 33,31,286/-, which was disproportionate and there was a possibility of suppression of sales qua for Noida Unit. Therefore, disallowance of 25% of expenses amounting to ₹ 8,32,821/- was made by the Assessing Officer. 3. Aggrieved assessee preferred first appeal, where it was pleaded that the ice manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Graphic Ltd. Copies of the electricity bills for the whole year were filed before the Assessing Officer and a copy of the same was again placed on record in the paper book. In view of the above of these facts no adverse inference should have been drawn as the appellant had been carrying out his manufacturing activities from the same premises during the year under consideration as well as the earlier periods. 9. With regard to the Assessing Officer s observations that the electricity charges were on the higher side, it is seen that the Assessing Officer had compared the electricity charges with the sales of the Noida Unit only. The appellant had his manufacturing facilities at Noida. The sales of the manufactured ice was being carried out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvanced interest free loans amounting to ₹ 32,30,000/-. Which was less than the interest free funds raised, therefore, no disallowance was called for. 7. CIT (A) found merit in appeal and deleted the addition by following observations: 13. I have carefully considered the submissions of the appellant, the observations made by the Assessing Officer in the assessment order and the facts of the case. The appellant has made interest free advances to various persons amounting to ₹ 32,30,000/-, whereas the appellant had raised interest free unsecured loans amounting to ₹ 38,50,000/- as appearing under the head unsecured loans in the balance sheet of the appellant. As the appellant had not made any interest payment on the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Assessing Officer has committed a mistake in adopting the sale of ice at Noida factory only, whereas the majority of sales have been reported at Shakarpur Head Office, besides there is no evidence what so ever to suggest any sale out of books, more so when the books of account of the assessee are not rejected. 11. In view of the facts and circumstances of the case, we see no infirmity in the order of CIT (A). Apropos the first ground of the Revenue and this ground of the Revenue is dismissed. Apropos the second ground about interest disallowance, it is not been disputed that the assessee received an amount of ₹ 38,50,000/- as interest free loans from various parties and the interest free advances have been given to a lesser ext ..... X X X X Extracts X X X X X X X X Extracts X X X X
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