9911796707
TMI Blog2021 (5) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... jectures. 2. The Assessing Officer and Ld.CIT (A) has erred in rejecting the revised computation filled during the assessment proceedings. The additional claim in the revised return was interest paid on O. D. limit of bank utilized for business purpose. 3. The Assessing Officer and Ld.CIT (A) has erred in disallowing expenses which were exclusively for business purpose and there is no justification of the disallowance. 4. The CIT Appeal has erred in dismissing the grounds of appeal regarding the rejection of revised return. 5. It is prayed that appellant may be allowed to add further grounds of appeal at the time of hearing. It is prayed that the addition made of Rs. 2,26,854/- may be deleted and the revised computation may be con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputation of Income Income from Other Sources -15,532.00 Net Loss to be carried forward -25,621,670.00 Capital Gain -13,674,227.00 Unabsorbed Depreciation -2,911,214.00 Carried Forward Business Loss -9,051,761.00 Exempt Income Agricultural Income -1,116,020.00 Refund Due -8,180,00 THE REASON FOR REVISED COMPUTATION: The assessee has claimed loss on account of interest paid on OD A/ c with Bank of Baroda. The detail is explained as under: The assessee had purchased a plot at 13/12, WEA, Karol Bagh, New Delhi, for trading purpose. Detail of source of purchase amount was as under: The payment of Rs. 800 lacs was made from paid out of borrowings from Bank of Baroda OD A/c with Bank of Baroda jointl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Grand. The funds were transferred from the OD limit in the saving account and in the firm M/s. Regent Continental for repayment of EMI of ICICi Bank Term Loan and also for purchase of assets. While finalizing the balance sheet of the firm, the payment made before 15th Oct, 2012 were taken to Capital A/ c without going into depth about the sources of capital. The interest paid on OD withdrawal on account of the assessee has been worked out and submitted to your office. The interest paid is allowable as business expense thus the same is claimed in the revised computation. Due to time limitation, the revised return cannot be filed thus the claim made during the assessment proceedings may be allowed. The detail of amount utilized out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al to Vendor 50,66,138 Amount refunded by Regent Grand to Regent Continental 26,05,350 2. From OD A/ c to Saving Bank A/ c 99,75,000 From Saving Bank to Construction 55,76,478 Payment to Vendors 76,74,616 The EMI of ICICI was routed through Regent Continental. It was wrongly debited to Satbir Singh Capital A/ c upto 31/03/2012. The same was transferred during the year 2012-13 by the firm. Copy of Bank Pass Book is enclosed for verification of capital invested in the business. 9. The revenue authorities refused the claim of the assessee on the following grounds: * The OD limit from Bank of Baroda is held jointly by the appellant and her husband Sh. Satbir Singh. * The OD limit was utilized for the purpose of purchase of share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the AO to reject it on the basis of delay in claim and the reliance on the decision of Goetze India Ltd. Vs. CIT is also upheld. 10. Culling the relevant facts, we find that the assessee has paid interest on OD limit from Bank of Baroda. The assessee has utilized OD limit jointly held with Shri Satbir Singh for the purchase of business assets. There are two entities namely Regent Grand and Regent Continental, the EMI has been paid from Regent Continental which was wrongly debited to Satbir Singh capital account upto 31.03. 2012. 11. Having gone through the crux of the issue, the interest paid by the assessee has to be given benefit of deduction unless found contra. We in principle hold that the assessee is eligible to file revised comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
