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TMI Blog2018 (5) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... ,140/- at an arbitrary rate of 13.25% which is defeating the test of nexus, purpose, character as requiring findings while determining the commercial expediency and business exigencies. 2. Because the quantum of disallowance and the rate of interest invoked for the said disallowance are both under challenge alongwith the quantum thereof. 3. Because the action is being under challenge on facts and law, while not taking into consideration the additional evidences of whatsoever kind which are the materials facts containing material particulars to the present case. 4. Because the disallowance of Rs. 13,779/- (1/6th of Rs. 82,673/-) attributable to personal usage is being challenged on the facts and law since the said disallowance is exces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d persons. After considering the assessee's submissions on this issue the AO pointed out that the assessee had himself admitted that these amounts were advances given to related parties to clear the trade debts (outstanding amount) of other parties dealing with these concerns . The AO accordingly held that the assessee had tried to intentionally camouflage the transaction by putting the name of these finn under the head sundry debtors but actually these are loans and advances by the appellant to his sister concerns and that too interest free. The AO held that it was evident that the amounts were advanced by the appellant to its related parties to repay the liability of 3rd party which was a non business purpose. The AO referred to the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 31.3.2012 exhibits that the assessee has sufficient interest free funds (own funds / interest free loan/sundry creditors) to provide loan / advance to sister concerns. As on 31.3.2011 the assessee has given interest free advances to sister concern amounting to Rs. 1,98,64,866.85 out of own funds amounting to Rs. 38,01,36,440.98 which is far in excess of advances to sister concerns. He further stated that assessee has given fresh advances amounting to Rs. 48,50,000/- to M/s SK Enterprises & Rs. 14,50,000/- to M/s Pride Sales Corporation (Totaling Rs. 63,00,000/-) during the impugned AY 2012-13 out of own funds amounting to Rs. 18,60,06,299.47 (Rs. 18.60 cr.) which too is far in excess of advances to sister concerns. He further stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's counsel that as to why in the preceding year the AO has allowed the same relief to the assessee and as to why Ld. CIT(A) in succeeding year has allowed the appeal of the assessee on the similar additions. - Punjab Stainless Steel Inds. Vs. CIT (2011) 186 Taxman 404 (Del) - Thukral Regal Shoes vs. CIT (2016) 72 taxmann.com 192 (Punjab & Haryana High Court) - Abhishek Industires vs. CIT (2006) '156 Taxmann 257 (Punjab & Haryana). - CIT vs. R. Mohan (2011-TIOL-687-HC/MAD-IT) - CIT vs. Cornerstone Exports P Ltd. (2016) 67 taxmann.com 345 (Gujarat) - CIT vs. Cornerstone Exports (P) Ltd. (2016) 238 Taxman 465. - Hon'ble Gujarat High Court. - Narasu's Spinning Mills vs. ACIT (2016) 157 ITD 512. - ITAT, Chennai. - Abh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as noted that no addition u/s. 36(1)(iii) has been made in the assessment passed u/s. 143(3) of the Act and also on perusal of the Ld. CIT(A)'s order in AY 2013-14, we note that Ld. CIT(A) Rohtak vide his order dated 11.4.2017 (Page 35- 41 of PB) has allowed the assessee's appeal for the succeeding assessment year i.e. AY 2013-14, on the same issue of Section 36(1)(iii) relating to same parties considering assessee's submissions. Keeping in view of the facts and circumstances of the case and following the principle of consistency, the addition of Rs. 37,17,140/- in dispute is deleted. 7.1 As far as the addition on account of telephone expense is concerned, we note that no specific finding has been made to indicate that the expenses incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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