TMI Blog2020 (2) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... hority as well as the Tribunal in view of the concurrent findings of fact. The order of the Tribunal so far as this issue is concerned, does not require any interference. Accordingly the appeal stands dismissed qua question no. 2(A) is concerned. Appeal admitted on Question 2(B), 2(C) and 2(D) : [B] Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of the CIT(A) deleting the disallowance of ₹ 42,90,471/- made by the Assessing Officer under Section 14A r.w. Rule 8D? [C] Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of the CIT(A) deleting the disallowance of depreciation of ₹ 5,00,000/- on the assets not put to use in the year under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the Assessing Officer under Section 14A r.w. Rule 8D? [C] Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of the CIT(A) deleting the disallowance of depreciation of ₹ 5,00,000/- on the assets not put to use in the year under consideration in respect of non-operative multi metal project at Ambaji? [D] Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of the CIT(A) deleting the disallowance of ₹ 31,15,94,168/- claimed under Section 80IA of the Act? 3 Question 2(A) is arising out of the disallowance made by the Assessing Officer under section 36(1)(iii) of the Act, 1961 amounting to ₹ 47,83,671/- being proportionate interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing direct nexus with the purpose for which the money has been borrowed. CIT(Appeals) held as under : 3.3 I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The AO hos disallowed the interest free advances given to the group companies by the appellant. It has been held by the AO that the appellant could not explain the purpose of business for which it was given by the appellant, The appellant on the other hand hos submitted that it has been given to the group companies and has been given for the purpose of business, and there was cu direct nexus of such business with those companies. The appellant hos also, without prejudice, submitted that most of the interest expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed. 6 The appellant Revenue therefore, being aggrieved by the order passed by CIT(Appeals) preferred appeal before the Tribunal. The Tribunal relying upon the aforesaid findings recorded by CIT(A) held as under : We have carefully considered the order passed by the learned CIT(A) and the AO as well. Lt appears from the record that the Learned AO was of the view that the appellant has failed to explain the purpose of business for which the loan was given but the appellant submitted that the loan given to those companies were for the purpose of business and there was a direct nexus with those companies. It was further submitted by the appellant that most of the interest expenses incurred by the appellant were in the nature of di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout any ambiguity. Hence, we find no infirmity in the order passed by the first appellate authority so far as to warrant interference. The question is accordingly answered in the affirmative, i.e. in favour of the assessee and against the revenue. Hence, revenue's appeal found to be devoid of any merit and dismissed. 9 In view of the aforesaid findings of fact arrived at by CIT(Appeals) and the Tribunal wherein the Assessing Officer is directed to recompute the proportionate disallowance by taking total interest expenditure at ₹ 11,53,706/- is without any ambiguity and as such there is no infirmity in the order passed by the First Appellate Authority as well as the Tribunal in view of the concurrent findings of fact. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
