TMI Blog2017 (5) TMI 1511X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of advances was as opening balances and there are judgments of Amritsar Tribunal holding that in respect of old advances from earlier years, no disallowance u/s 36 (1) (iii) was warranted. Further the disallowance if any u/s 36(1)(iii) has to be restricted to the amounts of loans which exceeded the capital of the assessee as has been held by Hon'ble Amritsar Bench in various case laws relied on by assessee. Therefore, the Assessing Officer is directed to restrict the disallowance of interest on loan amounts exceeding the available capital of the assessee. With these directions the appeal of the assessee is set aside to the office of Assessing Officer to reframe the assessment order in terms of above said directions. - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is any trading transaction between these parties. If there is trading transaction between the parties, the advance to be treated as trade advance made on account of commercial expediency and such notional interest cannot be treated as income of the assessee. In view of the above, the issue is set aside to the file of the CIT(A) with the above direction. The CIT(A) is also directed to take net balance in each account and re-examine the same . In view of the directions of Hon'ble ITAT, the Assessing Officer passed order on dated 16.12.2010 and again made disallowances of interest u/s 36(1) (iii) of the Act. While completing the assessment, the Assessing Officer examined the 14 accounts relating to advances instead of 10 accounts i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing judgments: (I) MBD Printographcs Pvt. Ltd Vs. DCIT (2016) ITA No. 534/Asr/2014 dated 13.6.16 61 I.T. Reps 187 (II) Malhotra Book Depot Vs. ACIT (2016 61 I.T. Reps 585 ITA No. 125 196/Asr/2015 (III) CIT Vs. Satish Bala Malhotra Ors. (2016) 387 ITR 403 (P H) (IV) CIT Vs. Max India Ltd (No.2) (2016) 388 ITR 81 (P H) 7. The Ld. DR, on the other hand heavily placed his reliance on the orders of authorities below. 8. We have heard the rival parties and have gone through the material placed on record. We find that it is a fact that in original assessment proceedings, the Assessing Officer had made disallowance of interest u/s 36(1)(iii) in respect of 10 parties , whereas the Assessing Officer in the second round ..... X X X X Extracts X X X X X X X X Extracts X X X X
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