TMI Blog2021 (3) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable . The above ratio laid down by the Hon ble Jurisdictional High Court is to be examined in the instant case. Therefore, we set aside the order of the Ld. CIT(A) on the above issue and restore the matter to the file of the AO to examine the applicability of the ratio laid down in Reliance Utilities Power Ltd.(supra). We direct the assessee to file the relevant documents/evidence before the AO. Assessee appeal is allowed for statistical purposes. - ITA No. 5149/MUM/2019 - - - Dated:- 18-3-2021 - SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessee by : Ms. Radhakant Sarat, AR Revenue by : Mr. Sanjay J. Sethi, DR ORDER PER N. K. PRADHAN , A. M. This is an appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vances resulting in disallowance of proportionate interest. The assessee has taken interest free loans also which is as under : Sr. No. Name of the concern Sum Advanced 1. C.K. Shah HUF ₹ 62,810/- 2. Saryu Manish Shah ₹ 31,410/- Total ₹ 94,220/- However, the AO was not convinced with the above explanation of the assessee on the ground that it is not supported by documentary evidence. Therefore, he calculated the proportionate interest and accordingly made a disallowance of ₹ 1,93,918/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rove such availability the time of extending loans. In reply to this, assessee submitted that the loans were granted in earlier years (prior to A.Y. 2011-12) for which the records are not available. Thus, availability of the funds and genuineness of the transactions regarding interest paid on borrowed loan by assessee has not been proven with the necessary documentary evidence. In view of above facts, ground number 2 of the assessee is dismissed and the addition made by A.O. in respect of disallowance of proportionate interest expenses of ₹ 1,93,918/- is upheld. 5. Before us, the Ld. counsel for the assessee submits that the capital of assessee being more than the advances, there is no question of interest bearing funds b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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