9911796707
TMI Blog2020 (1) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... iii) out of interest payment on the ground that borrowed funds has not been utilised for business purpose. 2. That the Ld. CIT(A) was not justified in completely discarding the specific submission regarding the fact that advances to SKIPL were not given in the A.Y. 2013-14 and thus the order of Ld. CIT(A) is perverse and deserves to be set aside. 3. The Ld. CIT(A) was not justified in sustaining the disallowance of Rs. 45,11,593/- under section 36(1)(iii) out of interest payment on the ground that borrowed funds has not been utilised for business purpose without appreciating the ratio of decision rendered by the Supreme Court in S.A. Builders Ltd. Vs. CIT (2007) 288 ITR 1 (SC) AND Sundaram Fastners Ltd. (1984) 149 ITR 773 Madras. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 of the Loans and advances forming part of the audited accounts. The A.O. therefore, called upon the assessee to explain vide questionnaire u/s 142(1) of the Act dated 25.2.2016. In response thereto, the assessee company replied that the amount was given for constructing building which would be used by the assessee company in future. However, the A.O. did not accept this contention of the assessee and therefore made disallowance of Rs. 45,11,593/- u/s 36(1)(iii) of the Act. Further, the A.O. also noticed that there was a difference in the interest as disclosed by the assessee accrued on FDR and as reflected in form 26AS. As per the assessee, the interest was of Rs. 9,10,138/- and as per the form 26AS, the amount received was Rs. 10,48,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. Under the identical facts, the coordinate bench of this Tribunal in the case of ACIT Vs. Auto Light (India) Ltd. (supra), has observed that from perusal of balance sheet, it is clear that though there is increase of share capital, but simultaneously, there is also increase in the loan and fixed assets of the assessee company. Therefore, the assessee was required to prove whether on the date of making investment or giving the interest free amount to the sister concern, the assessee was having sufficient interest free funds available with it. For that purpose, the assessee should demonstrate from its cash flow statement and bank account that it has date-wise availability of interest free funds on the date of making advances to the siste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous year it was Rs. 90,33,638/-. Basically, the difference pointed out by the A.O. is due to the maturity of the fixed deposit of substantial amount of Rs. 8.21 crores during the first quarter of financial year 2012-13. 8. However, Ld. D.R. opposed these submissions. 7. We have heard the rival submissions, perused the materials available on records. Considering the contention of the assessee that the fixed deposit was matured in the first quarter of financial year 2012-13 relevant to assessment year 2013-14, the A.O. would verify the interest related to the year under consideration and decide this ground afresh. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order was pronounced in the open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
