TMI Blog2016 (4) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,17,405 as on 31.3.2011 from ₹ 5,09,08,700 as on 01.04.2010, during the year, clearly establishes that all the borrowings for which interest/financial charges has been paid, were for the business purpose only. In view of the above material facts and respectfully following the ratios laid down by the Hon'ble jurisdictional High Court of Delhi in the above cited decision in the case of CIT vs. Bharti Tele-venture Ltd.( 2011 (1) TMI 326 - DELHI HIGH COURT ), we hold that the authorities below were not justified in making and upholding the disallowance of interest invoking the provisions of sec. 36(1)(iii) of the Act - Decided in favour of assessee - ITA No. 5161/Del/2015 - - - Dated:- 29-2-2016 - I. C. Sudhir, JM And L. P. Sahu, AM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es below while upholding the disallowance in question. In this regard, he referred page No. 3.2.1 of the First Appellate Order wherein the Learned CIT(Appeals) has discussed the submission of the assessee that it had not obtained any loan or credit facilities during the year. The total secured loans outstanding at the beginning of the year i.e. as on 01.04.2010 of ₹ 5,09,08,700 has been reduced to ₹ 2,75,17,405 as on 31.3.2011. The assessee s own fund being paid up capital and pre-reserves were ₹ 3,65,72,082 as on 01.04.2010 which had been increased to ₹ 7,72,68,670 at the end of the year i.e. on 31.3.2011. Reiterating the contents of the same paragraph of the First Appellate Order, the Learned AR pointed out further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in (2012) - 204 Taxman 188 (Mag.); ii) CIT vs. Reliance Utility Power Ltd. (2009) - 313 ITR 314 (Bom.); iii) CIT vs. South Indian Corpn. (Agencies) Ltd. (2007) - 290 ITR 217 (Mad.). 5. The learned Senior DR on the other hand tried to justify the orders of the authorities below. 6. Having gone through the decisions relied upon, we find that the Hon'ble jurisdictional High Court of Delhi in the case of CIT vs. Bharti Tele-venture Ltd. (supra) which has now been approved by the Hon'ble Supreme Court (supra) has been pleased to hold as where the assessee was having sufficient non-interest bearing funds by way of share capital and reserved and there was no nexus between the borrowings of the assessee and advances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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