9911796707
TMI Blog2019 (3) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case and in law, the CIT(A) has erred in deleting the disallowance of Rs. 22,47,597/- being expenses related to prior period. 3. On the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the disallowance of Rs. 18,25,000/- being paid to M/s Umang Credit Capital Ltd. Which has not provided services in arranging the loan to the assessee company. 4. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." 2. Brief facts of the case are as under: Assess filed its return of income on 31/10/2002, declaring total income of rupees "Nil" under normal provisions of the Act, after set of brought forward losses and depreciation, totalling Rs.3,94,78, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this Tribunal in ITA No. 410 and 1032/Del/2017 vide order dated 27/11/2009 in assessee's own case for assessment year 2001-02, wherein proportionate disallowance made was deleted. 5. We have heard submissions advanced by both sides in light of records placed before us. 5.1. Assessee placed reliance on assessment order for assessment year 2003-04, wherein no disallowance under section 14 A has been made and order of ITAT for assessment year 2001- 02, wherein disallowance of 1% has been deleted. 5.2. We have perused Annexure C, Schedules 6 to audited accounts, wherein investments made by assessee have been listed. It is observed that assessee has sufficient investments made in government securities, subsidiary companies, unit trust of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these expenses pertain to prior period, and hence are not allowable against income of current year. Placing reliance upon order passed by Ld.AO he submitted that assessee has been using mercantile system of accounting of expenses and liability of the same depends upon time when services are provided, which is in preceding year. 6.2. On the contrary, Ld.AR submitted that, bills in respect of services provided were received during year and therefore expenses related to current year and were allowable. It has been submitted that for similar reason proceedings under section 263 was initiated, for assessment year 2000-01 and Ld.CIT therein upon being satisfied granted relief to assessee by dropping proceedings under section 263 of the Act. It h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ground No. 3 has been raised by revenue against deleting of disallowance of commission expense amounting to Rs.18,25,000/- paid to M/s.Umang Credit Capital Ltd. 7.1. Ld.Sr.DR submitted that bank had issued notice under section 133 (6) to Export Import Bank, Mumbai Head Office calling for details towards sanction of term loan of Rs. 25 crores to assessee. In response to notice under section 133 (6) Bank informed Ld.AO regarding details as well as confirmed that M/s. Umang Credit Capital Ltd., was not involved in negotiating and/or arranging for loan facilities on behalf of assessee. Ld.Sr.DR submitted that, there have been no services rendered by M/s.Umang Credit Capital, in lieu of which commission has been paid, and therefore payment mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his year is same as that in earlier year, and whether such loan has been taken for purposes of assessee's business. Under such circumstances we do not agree with Ld. CIT(A) as well as Ld.AR that issue stands covered by orders of this Tribunal in earlier years. We accordingly set aside this issue to Ld.AO for due verification in the light of relevant documents on record. Ld. AO is to verify the same as per law to ascertain true nature of transaction. Assessee is directed to file all requisite details as called for by Ld. AO in order to decide this issue. 8.2. Accordingly this ground raised by revenue stands allowed for statistical purposes. 9. In the result appeal filed by revenue stands allowed for statistical purposes. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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