9911796707
TMI Blog2014 (2) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... ter concern without commercial expediency. 2. On the facts and circumstances of the case, the Ld. CIT (A) has erred in deleting disallowance of Rs. 7,00,000/- being notional rental income calculated u/s 23 of the Income Tax Act,1961. 3. On the facts and on the circumstances of the case, the Ld. CIT (A) has erred in admitting the additional evidence before her without affording any opportunity to Assessing Officer for examine the evidence as per Sub-Rule 46A of the IT Rules 1962. 4. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of hearing of the appeal." 2. We have heard Ms. Y. Kakkar Ld. Departmental Representative on behalf of the Revenue and Mr.V.S.Gupta, Ld. Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest free funds. Presumption is that such interest free funds have been utilized for giving interest free advances, unless otherwise proved. For this proposition we draw strength from the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd., 313 ITR 340 (Bom). Respectfully following the same we uphold the finding of the Ld. CIT (A). 6. The Ld. CIT (A) also held that the loans in question taken by the assessee were for specific purposes, namely for export bill discounting, packing credit loans, term loan taken for purchase of property for business use, car loan and overdraft. The Bank when guaranty such specific loans, ensure that the money is used for the purpose for which it is given . T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business. He further held that the Assessing Officer has no basis what so ever, to estimate that 20% of the factory was only being used for business and for holding that the balance area was lying vacant. 9. The Ld. Departmental Representative could not controvert this factual finding of the first appellate authority. Her arguments were on the issue of admission of additional evidence etc. These are devoid of merit. In the result this ground is dismissed. 10. Ground no.3 is on the admission of additional evidence. The Ld. Counsel for the assessee submitted that the only additional evidence that was admittedly an assessment order of the commercial tax department, and that it was filed at on the direction of the Ld. CIT (A) u/s 46(a) (iv) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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