TMI Blog2019 (12) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the interest free funds available with the assessee were more than the advance paid to its sister concerns, therefore the issue in hand remanded to the file of AO to decide accordingly as per dictum of the Hon ble Apex Court. Ground No.1 2 are co-related and hence allowed for statistical purposes. Interest subsidy by the Revenue Authorities as Revenue receipt - HELD THAT:- CIT(A) has correctly observed that the appellant has himself shown the amount of interest subsidy as Revenue Receipt however, it is a fact that as per the judgment of jurisdictional High Court in the case of Sh. Balaji Alloys (supra), the interest subsidy has been treated as Revenue receipt, hence in view of the same, the Assessing Officer is directed to consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act ). 2. The issues involved in both the appeals, are similar and identical, therefore, for the sake of brevity and convenience the facts of ITA No.173/Asr/2014 for A.Y.2009-10 have been taken into consideration for adjudication of the issues and result of the same shall be applicable mutatis mutandis to ITA No.174/Asr/2014 for A.Y.2010-11. 3. The assessee by way of the application dated 28.06.2016 sought permission to accept the amended grounds of appeal, on which the Ld. DR did not raise any objection, hence, we have accepted the amended grounds of appeal which are reproduced herein below. 1. That the ld. A.O CIT(A) wrongly made addition being failed to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) is bad in law, as well as, on facts. 6. That appellant craves to add or amend any ground of appeal before the appeal is finally heard or disposed-off. 7. That the order may kindly be modified or another consequential relief be allowed. 4. By way of ground No.1, the Assessee has raised the issue that Ld. A.O CIT(A) wrongly made addition being failed to prove any personal use of loans or nexus of interest paid to bank Vs. Loan given to sister concerns i.e., M/s Rajdhani Industries M/s Rajdhani Yarn Mills, when there is already excess balance in Proprietor s Capital A/c, than loans given, as well as, these loans represents Interest-Interest free loans, resulting into C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the authorities below. Recently, the Hon ble Apex Court in the case of CIT vs. Reliance Industries Ltd. [2019] 102 taxmann.com 52 (SC) has affirmed the view of the High Court to the effect that if the interest free funds available to the assessee were sufficient to meet its investment, then it could be presumed that the investment were made from the interest free funds available with the assessee. The Apex Court in the case of Hero Cycles Ltd. [2010] 379 ITR 347 and Munjal Sales Corporation vs. CIT, Ludhiana (Civil Appeal No.1378/2008 dated 19th Feb., 2008) also analyzed laid down the same dictum. In the instant case, the interest free funds available with the assessee were more than the advance paid to its sister concerns, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Revenue receipt, hence in view of the same, the Assessing Officer is directed to consider this aspect afresh while following the judgment of the Jurisdictional High Court in the case of Sh. Balaji Alloys (supra). Resultantly Ground No. 3 is allowed for statistical purpose. 6. By ground No.4, the assessee has raised the issue that the Ld. CIT(A) has wrongly ignored that the disallowance of Bank Interest expenses will decrease the (claimed) loss of the assessee, but will also increase deduction u/s 80-IB correspondingly, (with the same amount) and cannot be added separately, as taxable income, of the appellant, in fact is a covered matter by these judgments : (a) S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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