TMI Blog2019 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ances, where the available funds were much more than interest free advances in the hands of assessee, no disallowance on account of interest expenses is to be made in the hands of assessee. - Decided in favour of assessee. - ITA Nos.71 & 1347/PUN/2018 - - - Dated:- 31-12-2018 - Ms. Sushma Chowla, JM For the Appellant : Shri M.K. Kulkarni For the Respondent : Shri Rajesh Gawali ORDER PER SUSHMA CHOWLA, JM: Both the appeals filed by assessee are against separate orders of CIT(A)-1, Kolhapur, dated 08.11.2017 and 07.06.2018 relating to assessment years 2008-09 and 2009-10 against respective orders passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. Both the appeals relating to same a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crual basis. The assessee in reply, explained that he used to receive various discounts from the companies for prompt payments, quarterly discounts, slab discount, sales discount, etc. As per oral instructions of M/s. Apollo Tyres, the assessee had made the aforesaid investments on various dates as tabulated at pages 3 and 4 of assessment order. The plea of assessee before the Assessing Officer was that investments were out of own funds and not from borrowed funds. He also pointed out that deposits were necessary for carrying on his business. He also contended that no income was received on the aforesaid investments made in shares. The Assessing Officer vide para 11 notes the contention of assessee in this regard and also notes that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard to show the availability of own funds. 9. The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below. 10. On perusal of record and after hearing both the learned Authorized Representatives and after perusing the Balance Sheet of sole proprietary concern of the assessee, I find that there is credit balance of ₹ 47,22,400/- in the Capital Account of assessee, as against which the deposits which were made totaled to ₹ 22,36,000/- at the end of the year. The deposits with different companies associated with Apollo Tyres right from 01.04.2003 to 31.03.2007 totaled to ₹ 36,36,000/-, sum of ₹ 4 lakhs was returned back on 31.08.2007 and ₹ 10 lakhs on 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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