TMI Blog2018 (2) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... t u/s. 68 - CIT-A allowed the claim - Held that:- The borrowing in this year is only from five parties and that too from NBFC. The company from which the assessee has borrowed funds have enough assets and are income tax assessee. The assessee has discharged its burden of proof and thereafter, if the AO had to make any additions then he should have discredited the evidences adduced by the assessee. Without doing so, merely because notice of 3 creditors were returned back to him un-served, cannot be the sole basis for addition and therefore, the ld CIT(A) has rightly deleted the same. - Decided against revenue - I.T.A No. 456/Kol/2014 - - - Dated:- 14-7-2017 - Shri A. T. Varkey, JM And Shri M. Balaganesh, AM For the Appellant : Shri T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.4. I have considered the facts of the case. The subscription consists of amount paid to National Stock Exchange and to a club. In his report, the assessing officer has not raised any objection in respect of payment made to the NSE. The same is related to appellant s business and allowable as business deduction. On payment to club, the assessing officer has expressed his view that the payment to club was not allowable. However, it has been held by a number of judicial authorities, that payment of membership fee made to club for business exigency is allowable as deduction. Some such decisions are in the cases of Sundaram Industries Ltd. 240 ITR 335, Otis Elevator Co. (India) Ltd., 195 ITR 682, Gujarat State Exports Corporation Ltd. 209 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as deduction. We note that the view of Ld. CIT(A) is in line with the decisions of Hon ble Gujarat High Court P H High Court in the cases of Gujarat State Exports Corporation Ltd. Vs. CIT (1994) 209 ITR 649 (Guj), CIT Vs. Groz Beckert Asia Ltd. (2013) 351 ITR 196 (P H). We do not find any infirmity in the order of the Ld. CIT(A) in allowing the expenses incurred for membership in club which has nexus to the business of the assessee, which is required to forge friendship and required to entertain clients inorder to make progress and benifits business in the long run. So, we uphold the order of Ld. CIT(A) and dismiss this ground of appeal of revenue. 3. Ground no. 2 relates to deletion of addition on account of unsecured loans as cash c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in para 8.4 as under: I have carefully considered facts of the case. The assessing officer had made addition in respect of unsecured loans from nine parties. However, actually the loans taken during the year are from five parties only. So, in any case, no addition can be made in respect of the remaining parties. Coming to the five parties, from which loans had been taken during the year, it is seen that all of them are companies and nature of their business is stated to be NBFC. The loans given by them are by way of cheques. They are assessed to income tax. Copies of the returns filed by them have been furnished. The balance sheets, in which the loans given to the appellants are reflected, have also been furnished. The main objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant has, in my opinion, discharged its onus regarding the unsecured loans and the same cannot be considered to be unexplained cash credit, This view is further supported by various decisions cited by the appellant, including those in the cases of Rohini Builders 256 ITR 360 (Guj.) and Nemichand Kothari 264 ITR 254 (Gau.). The addition made u/s 68 is accordingly deleted. As a logical consequence, the disallowance of ₹ 6,66,827/- in respect of interest on the same is also deleted. 3.2. We have heard rival submissions and perused the material available on record. And we fully agree with the factual finding recorded by the Ld. CIT(A). The Ld. DR could not point out any defect in the factual assertion made by the Ld. CIT(A). The b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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