TMI Blog2021 (4) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee on ad-hoc basis on the ground that the expenses incurred for personal purposes cannot be segregated - HELD THAT:- The assessee failed to file supporting bills and vouchers before the AO. In our view, the decision of the AO as confirmed by the ld. CIT(A) on these two issues are ad-hoc and call for no interference for the reason that no bills and vouchers were produced by the assessee before the AO. Thus we uphold the same and dismiss these grounds of the assessee. Additional ground regarding the claim for deduction of educational cess paid - HELD THAT:- We uphold the contention of the assessee that the education cess and higher education cess is allowable as a deduction by applying the propositions of law laid do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on behalf of the Revenue ORDER Per J. Sudhakar Reddy , AM : Both these appeals are filed by the assessee directed against separate orders of the Learned Commissioner of Income Tax (Appeals)-13, Kolkata, [hereinafter the CIT(A) ], passed u/s. 250 of the Income Tax Act, 1961 (the Act ), for the Assessment Years 2013-14 2014-15. As the appeals belong to the same assessee firm, for the sake of convenience they are heard together and disposed off by way of this common order. 2. We have heard rival contentions. On a careful consideration of the facts and circumstances of the case, perusal of the papers on record and the case law cited, we hold as follows. 3. We first take up the appeal in ITA No. 269/Kol/2019 for the AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interference for the reason that no bills and vouchers were produced by the assessee before the AO. Thus we uphold the same and dismiss these grounds of the assessee. 4.1. The assessee has raised additional grounds in this appeal. There are legal grounds not requiring enquiry into any fresh facts. The additional ground is regarding the claim for deduction of educational cess paid. 4.2. Following the judgement of the Hon ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. CIT [1998] 229 ITR 383 (SC) we admit this ground of the assessee. 4.3. The Kolkata B Bench of the Tribunal in the case of ITC Ltd. in ITA No. 685/Kol/2014 and ITA No. 1267/Kol/2014 order dated 27.11.2018 had followed the judgement of the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional interest of ₹ 64,407/-. The facts of this addition are that the assessee gave loan to Shyam Sundar Kayal (father of a partner of the assessee firm) and he was charged interest @9%, whereas from others who had taken advances from the assessee, the assessee charged interest @12%. The difference amount of 3% was treated as notional income of the assessee and taxed by the AO. It is well settled that notional interest cannot be brought to tax. The Hon ble Gauhati High Court in the case of Highways Construction Company Pvt. Ltd. vs. CIT 199 ITR 702(Gau.) held as follows: Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessment years 1978-79 and 1979-80 - Assessee-company had given interest-free loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. 7.2. The Kolkata B Bench of the Tribunal in the case of ITC Ltd. in ITA No. 685/Kol/2014 and ITA No. 1267/Kol/2014 order dated 27.11.2018 had followed the judgement of the Hon ble Rajasthan High Court in the case of M/s. Chambal Fertilisers and Chemicals Ltd. vs. JCIT in D.B. Income Tax Appeal No. 52/2018 and adjudicated the issue in favour of the assessee. Later, the division Bench of the Tribunal in the case of SREI Infrastructure Finance Ltd. vs. DCIT [2016] 72 taxmann.com 239 (Calcutta) has decided the issue against the assessee. The assessee carried the matter to the Hon ble Calcutta High Court. The Hon ble Calcutta High Court, despite the decision in the case of the assessee group company SREI Infrastructure Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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