TMI Blog2019 (4) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to the fact that the learned Departmental Representative has not pointed out any reasons whatsoever as to why the coordinate bench decision will not apply on this assessment year as well, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. No interference is called for. Addition on account of interest free loans and advances to sister concerns - assessee did not discharge the onus of showing the nexus of interest free advances and loan with interest free funds - CIT-A deleted the addition following a direct decision in assessee s own case for the assessment years 1998-99 to 2002-03 - HELD THAT:- The relief on this issue was given by the coordinate bench was challenged by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar under section 37 on its deductibility. We, therefore, approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter on this aspect as well. - ITA No.: 1800/Ahd/15, CO No. 68/Ahd/2017 And ITA No.: 1409/Ahd/15 - - - Dated:- 4-3-2019 - Mr P P Bhatt, President and Mr Pramod Kumar Vice President For The Assessee : S N Soparkar along with Himanshu Shah For The Revenue : Subhash Bains ORDER 1. We will first take up the appeal filed by the Assessing Officer. 2. This appeal challenges correctness of the order dated 16th March 2015 passed by the CIT(A) in the matter of assessment under section 143(3) r.w.s. 147 of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009 of a coordinate bench of this Tribunal, in assessee s own case for the assessment years 1998-99 to 2002-03. The Assessing Officer is not satisfied and is in appeal before us. 5. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 6. We find that there is no dispute that the material facts and circumstances of this assessment year, vis- -vis the assessment years 1998-99 to 2002-03, are materially similar. The relief on this issue was given by the coordinate bench, but no specific grievance raised by the Assessing Officer against the Tribunal order, on that aspect, before Hon ble High Court. We further fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief granted by an appellate authority in one assessment year, when, on the same issue, it has accepted the relief granted by the appellate authority in another assessment year. Be that as it may, the issue in appeal is covered, in favour of the assessee, by an decision of the coordinate bench. In this view of the matter, respectfully following the coordinate bench decision and having regard to the fact that the learned Departmental Representative has not pointed out any reasons whatsoever as to why the coordinate bench decision will not apply on this assessment year as well, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. No interference is called for. 7. Ground no. 1 is thus dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for its own business purposes, and that no part of these borrowings were used in advancing this interest free advance. None of these submissions, however, impressed the Assessing Officer. He was of the view that the assessee could have saved its huge interest burden only if the assessee had charged interest on interest free advance to its subsidiary. The Assessing Officer further noted that the ratio of this advance to the total borrowings is 3%. The Assessing Officer thus proceeded to disallow 3% of total interest paid by the assessee, which worked out to ₹ 4,84,19,370. Aggrieved by the disallowance so made, assessee carried the matter in appeal before the CIT(A) who granted the relief by following a direct decision dated 5th J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer is as follows: The CIT(A) has erred in law and on facts in deleting the addition of ₹ 1,32,000 made under section 37 of the Act, and not considering that the payments were made for the kickbacks and not incurred for business purposes. 13. So far as this disallowance is concerned, the relevant material facts are as follows. During the course of the assessment proceedings, the Assessing Officer noticed that the assessee had paid ₹ 1,32,000 to Delhi base agent by the name of True Bell International for fees and expenses to be incurred for registration of assessee s products in Iraq. There was another payment of US $ 2,447 for After Sales Service Fees paid to Iraqi entitie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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