TMI Blog2018 (3) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by the assessee during the year under consideration before 14.10.2009, the disallowance on account of interest attributable to the said amount was liable to be made for the period from 01.04.2009 to the time when the said amount had been returned back by M/s. Phool Commercial Pvt. Ltd. to the assessee company during the year under consideration. We, therefore, find no infirmity in the impugned order of the Ld. CIT(A) directing the A.O. to disallow interest attributable to the amount of ₹ 51,00,000/- advanced by the assessee company to M/s. Phool Commercial Pvt. Ltd. for the period from 01.04.2009 till the date when such amount has been refunded by M/s. Phool Commercial Pvt. Ltd. in the year under consideration @ 13% P.A. - I.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee in the appeal filed by the Ld. CIT(A) and after considering the submissions made by the assessee as well as the material available on record, the Ld. CIT(A) decided the said issue vide paragraph no 4.2.1 of his impugned order which reads as under: With regard to M/s. Phool Commercial Pvt. Ltd., it is seen that the advances made to this concern during the year were to the extent of ₹ 6,29,55,000/- including the advances of ₹ 2,71,00,000/- brought forward as on 01.04.2009 which has already been considered in A.Y. 2009-10. However, it is seen from the copy of ledger account of this concern in the books of account of the appellant that the advance carried forward from earlier year of 2,71,00,000/-. However, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly paid by the assessee on the borrowed funds during the year under consideration. In this regard, he has invited our attention to the relevant portion of the assessment order which clearly shows that the disallowance on account of interest attributable to the interest free advance given by the assessee to M/s. Phool Commercial Pvt. Ltd. was worked out by the A.O. himself at 13% P.A. being the rate of interest charged by the bank on the assessee s overdraft account. Keeping in view the same, we find merit in the contention of the learned counsel for the assessee and direct the A.O. to compute the interest to be disallowed as per the direction of the Ld. CIT(A) given in the impugned order @ 13% instead of 15%. 5. The second contention rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was liable to be made for the period from 01.04.2009 to the time when the said amount had been returned back by M/s. Phool Commercial Pvt. Ltd. to the assessee company during the year under consideration. We, therefore, find no infirmity in the impugned order of the Ld. CIT(A) directing the A.O. to disallow interest attributable to the amount of ₹ 51,00,000/- advanced by the assessee company to M/s. Phool Commercial Pvt. Ltd. for the period from 01.04.2009 till the date when such amount has been refunded by M/s. Phool Commercial Pvt. Ltd. in the year under consideration @ 13% P.A. 6. In the result, the appeal of the assessee is partly allowed . Order Pronounced in the Open Court on 9th February, 2018. - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
