TMI Blog2019 (8) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2008-09 abd 2010-11the learned CIT(A) had allowed the deduction of ₹ 900161/- in the light of the fact and findings reported int he decision of the learned CIT(A), we do not find any merit in the ground of appeal of the revenue therefore the same is dismissed. Disallowance u/s 36(1) - interest free funds given - assessee failed to prove that such funds were given for business purposes - HELD THAT:- During the course of assessment proceedings on perusal of the details of loan and advances the assessing officer noticed that assessee has shown ₹ 20 lacs as outstanding receivable from M/s Red Event India Pvt. Ltd. He observ4ed that during the assessment yea₹ 2008-09 and 2009-10 the assessing officer has given the findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of ₹ 20,11,387/- made under section 35 D of the Act in respect of preliminary expenses ? ( B) Whether the Appellate Tribunal has erred in law and on facts deleting the disallowance of ₹ 2,10,000/- made under section 36(1) (iii) of the Act on account of interest free funds given ignoring that assessee failed to prove that such funds were given for business purposes ? ( C) Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of ₹ 54,50,016 made under section 14 A of the Act read with rule 8D on the ground that no exempt income is earned ? 3. So far as the first question as proposed by the Revenue is concerned, the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of learned CIT(A) to allow the claim of preliminary expenses to the amount of ₹ 20,11,387/- consisting of ₹ 11,11,226+9,00,161. After perusal of the above facts, we observed that claim of the assessee to the amount of ₹ 11,11,226/- was never disallowed in any of the earlier years and similarly for the assessment year 2008-09 abd 2010-11the learned CIT(A) had allowed the deduction of ₹ 900161/- in the light of the fact and findings reported int he decision of the learned CIT(A), we do not find any merit in the ground of appeal of the revenue therefore the same is dismissed. 4. So far as the second question as proposed by the Revenue is concerned, the findings recorded by the Tribunal are a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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