TMI Blog2021 (6) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Hon ble ITAT in the assessee s own case [ 2020 (7) TMI 764 - ITAT MUMBAI] therefore, we set aside the finding of the CIT(A) on this issue and allowed the claim of the assessee. Disallowance of rent expenses - assessee has taken the premises at Vapi, Lonavla for the purpose of business - HELD THAT:- The rent agreement speaks about this fact that the property was taken for the business purposes. Rent has also been mentioned in the agreement. The assessee also book the property on Lonavla on rent in sum of ₹ 10,000/- per month which was for the residence of employees. The TDS was deducted from every property. Nothing is on record to which it can be assumed that the property was not used for the business purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in confirming the order of AO in disallowing Rent Expenses of ₹ 4,92,000/- without appreciating the facts of the case. 3. The appellant craves leave to add/alter/modify any/all grounds of appeal. 3. The brief facts of the case are that the assessee filed its return of income declaring total income to the tune of ₹ 6,26,68,830/- for the A.Y.2015-16 and book profit in sum of ₹ 6,69,07,163/- u/s 115JB of the Income tax Act, 1961. Thereafter, the assessee filed the revised return of income on 29.03.2016. The case was selected for scrutiny under CASS. Notices u/s 143(2) 142(1) of the Act were issued and served upon the assessee. From the profit loss account, it was observed that the assessee has paid the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal before us. ISSUE NO.1 4. Under this issue the assessee has challenged the disallowance of interest of ₹ 13,08,070/-. At the very outset, the Ld. Representative of the assessee has argued that the issue has duly been covered by the decision of the Hon ble ITAT in the assessee s own case in ITA. No.3999/Mum/2018 for the A.Y.2014-15 dated 10.07.2020, therefore, the interest is liable to be allowed in the in interest of justice. However, on the other hand, the Ld. Representative of the Department has refuted the said contention. Before going further, we deem it necessary to advert the finding of the Hon ble ITAT in the assessee s own case (supra). The relevant finding is hereby reproduced as under.:- 6. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different. The assessee made advance payment of ₹ 1,01,38,081/- for purchase of flats/office premises for investment purposes. During the year under consideration, out of free reserve and surplus at the start of year i.e. as on 01.04.2014 which were ₹ 92,23,29,567/- (₹ 92,59,58,257/- Reserve Surplus Less ₹ 36,28,690/- Revaluation Reserve). The profit was to the tune of ₹ 11,22,99,267/-after tax in sum of ₹ 4,60,29,360/- plus Depreciation ₹ 6,62,69,907/-. The finding of the case decided by the Hon ble Bombay High Court titled as CIT Vs. Reliance Utilities Power Ltd 313 ITR 340 is duly applicable to the facts of the present case in which it is specifically held that if there are funds available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property was taken for the business purposes. Rent has also been mentioned in the agreement. The assessee also book the property on Lonavla on rent in sum of ₹ 10,000/- per month which was for the residence of employees. The TDS was deducted from every property. Nothing is on record to which it can be assumed that the property was not used for the business purposes. At least, it is necessary on the part of the AO to collect same material to which it can be assumed that the property was not taken on rent for the business purposes. The copy of agreement with regard to the residential property at Vapi dated 01.10.2011 to 30.09.2014 and dated 01.10.2014 to 30.09.2017 are on the file which lies at page no. 27 to 30 and 31 to 34 of the pape ..... X X X X Extracts X X X X X X X X Extracts X X X X
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