TMI Blog2019 (4) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ds available with the assessee in the shape of share capital, reserves and surplus, as well as net revenue from operations, we are of the view that alleged investment in WIP could be assumed as carried from these surplus funds. No notional interest ought to be calculated for capitalization. See case of CIT Vs. Reliance Utilities & Power Ltd [2009 (1) TMI 4 - BOMBAY HIGH COURT] - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... most respectfully submitted that the Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts by confirming a disallowance of interest to the extent of 9.75% u/s 36(1)(i i i ) of the IT Act in respect of capital work in progress. 3. Brief ly stated, the assessee is engaged in manufacturing and trading of POY, FDY texturized yarn and trading in cloth. The return filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 4. Aggrieved, the assessee preferred appeal towards such interest disallowances before the first appellate authority. The CIT(A) sustained the disallowance of interest on capital work- in-progress and granted relief for interest disal lowance towards interest f ree advances. 5. Further aggrieved by the par t relief , the assessee has preferred appeal before the Tribunal . 6. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reserves and surplus of more than ₹ 48 crores. It has internal accrual during the year which can take care of such investments. The ld. counsel for the assessee took us through net cash flow from operations available on page no.20 of the annual report which suggest that the assessee has net cash f low ₹ 16,55,474/- . Thus, considering interest free funds available with the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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