TMI Blog2015 (10) TMI 2496X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 6,56,250/-. We find merit in the appeal of the assessee. Accordingly, we allow the appeal of the assessee and delete the addition - Decided in favour of assessee - ITA No. 1710/PN/2012 - - - Dated:- 9-10-2015 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For the Appellant: Shri Abhay Avchat For the Respondent: Shri Dheeraj Kumar Jain ORDER PER VIKAS AWASTHY, JM : The appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals)-II, Pune dated 25-08-2011 for the assessment year 2007-08. 2. The appeal has been filed with a delay of 298 days. The assessee has filed an application for condonation of delay. The application is supported by an affidavit citing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own interest free funds on the date of advance. The assessee had transferred the rights in the land and had received ₹ 1,51,00,000/- as advanced. This fact has not been disputed by the Assessing Officer. The assessee had advanced ₹ 75,00,000/- to Shri N.V. Jadhav from the amount received from the transfer of rights in the land. Thus, the authorities below have erred in making disallowance of ₹ 6,56,250/- by alleging that interest bearing funds have been utilized for giving interest free advances. In support of his submissions, the ld. AR placed reliance on the decision of Hon'ble Bombay High Court in the case of CIT Vs. Reliance Utilities Power Ltd. reported as 221 CTR (Bom) 435. 5. Au contraire Shri Dheer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance to Shri N.V. Jadhav out of interest bearing funds. 7. The Assessing Officer in his order has categorically stated that the amount has been advanced by the assessee in the month of August. According to the Assessing Officer an examination of cash flow statement shows that the assessee does not have own sufficient funds for advancing to Shri N.V. Jadhav. However, the Assessing Officer admitted the fact that as on 31-08-2006 the assessee was having interest free funds to the tune of ₹ 1,51,00,000/-, received as advance from transfer of rights in the land. The relevant extract of the findings of Assessing Officer in para 6.2.4 of the assessment order reads as under: ..The situation becomes clear after examining t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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