TMI Blog2015 (11) TMI 1528X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly, this issue is remitted back to the file of AO to decide in terms of the above directions. - Decided in favour of assessee for statistical purposes Disallowance of interest - Held that:- At the time of hearing Ld. Counsel for the assessee fairly stated that the issue can be set aside to the file of the AO for verification of availability of interest free funds invested in interest free loans. In view of the above plea of the assessee, we remit the issue back to the file of the AO with the direction to follow the decision of Reliance Utilities & Powers Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT ] and accordingly, decide the issue.- Decided in favour of assessee for statistical purposes - I.T.A No. 662/Kol/2013 - - - Dated:- 24-11-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain payable as at the end of the year, hence the addition was not called for. 4. For that the Ld. CIT(A) erred in confirming the addition of ₹ 29,12,123/- being the payment made under the head hire charges ignoring the terms of the agreement with Philips. 3. Briefly stated facts are that assessee has claimed labour charges at ₹ 55,440/-, carriage inward charges amounting to ₹ 62,07,498/- and hire charges amounting to ₹ 29,12,123/- in the P L Account, but no TDS was deducted u/s. 194C of the Act. Ld. Counsel for the assessee before us now clearly admitted that the assessee has not deducted TDS u/s. 194C but he is obliged to deduct TDS u/s. 194C of the act. The AO applied the provisions of section 40(a)(ia) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue is remitted back to the file of AO to decide in terms of the above directions. This issue of assessee s appeal is allowed for statistical purposes. 6. The next issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in disallowing interest of ₹ 2,69,265/- and ₹ 7059/-. For this, assessee has raised following ground no.5: 5. For that the Ld. CIT(A) erred in confirming the addition on account of the interest of ₹ 2,69,265/- and ₹ 7059/- estimated for the amount advanced to M/s. Glow Signs and Jasbinder Singh when under the law no such estimate on account of notional income was called and the amount was not advanced out of the loans and advances. 7. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Bom.) as well as the decision of Kolkata ITAT 3rd Member in the case of S. P. Jaiswal Estate reported in 147 TTJ 649 there cannot be any disallowance. We find that the loan given to sister concern is less than the interest free fund available with the assessee and accordingly, this issue is covered in favour of the assessee by the decision of Hon ble Bombay High court in the case of Reliance Utilities Powers Ltd., supra wherein it is held as under: If there be interest-free funds available to an assessee sufficient to meet its investments and at the same time the assessee had raised a loan it can be presumed that the investments were from the interest-free funds available. At the time of hearing Ld. Counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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