TMI Blog2019 (11) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee cannot be fastened with a notional interest liability while complying with the said directions of the Hon ble Special Court. Prepaid taxes paid by the assessee in the form of TDS, wealth tax, income tax and advance tax has got no relevance with the borrowings of the assessee as admittedly those were paid by the assessee over the years out of the income earned by the assessee in several years and out of maturity proceeds of fixed deposits / sale proceeds of shares. Hence, there cannot be any assumption that the borrowed funds were used by the assessee for making payments towards the aforesaid taxes. We find that in any case, assessee is having sufficient own funds in its kitty as is prevalent in the balance sheet and hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities. 3. Respectfully following the said Circular, the appeal filed by the revenue is dismissed as not maintainable. 4. Incase, if the revenue is able to provide evidence that the case falls under any of the exceptions provided in the circular issued by the CBDT, then the revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstance this order shall be recalled by this Tribunal. 5. In the result, appeal filed by the revenue is dismissed as not maintainable. ITA No.5839/Mum/2018 (Assessee Appeal) A.Y. 2014-15 6. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the disallowance of interest in the sum of ₹ 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 992 since 08/06/1992 and in view of the notification issued by the Hon ble Special Court, the properties of the applicants were vested with the custodian. We find that the entire issue revolves on the point of borrowed funds being diverted for non-business purposes by the assessee and hence, correspondingly the interest paid by the assessee requires to be disallowed, in the opinion of the Assessing Officer. We find that the ld. AR had pleaded that the borrowings were made by the assessee in the year 1990 and invested in the shares of various companies. The interest paid on such borrowings was allowed as deduction from time to time to the assessee in the past. The ld. AR pleaded that those shares were sold in the open market at much higher p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Advance Tax - ₹ 60,66,341/- 3. Loan to M/s. Harshad S Mehta - ₹ 47,37,93,346/- 7.2. From the details provided in the balance sheet as on 31.3.2013 and 31.3.2014, we find that the own funds of the assessee in the form of capital account balance was ₹ 70,22,40,565/- as on 31/03/2014 and ₹ 70,03,89,126/- as on 31/03/2013. The ld. AR pleaded that the amounts were paid to Shri Harshad S Mehta in the sum of ₹ 47,37,93,346/- out of withdrawal of fixed deposits kept with various banks and as per the directions of Hon ble Special Court. Hence, there cannot be any charging of interest on the said loans paid to Shri Har ..... X X X X Extracts X X X X X X X X Extracts X X X X
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