TMI Blog2021 (6) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... tionate interest paid by the assessee on the ground that the interest free advances were not for the purposes of assessee's business - HELD THAT:- We find that the assessee's contention of its own interest free funds being much more than the advances made as interest free loans needs verification - we deem it fit and proper to set aside the issue to the file of the Assessing Officer for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mt P. Madhavi Devi, JM This is assessee's appeal for the A.Y. 2008-09 against the order of the CIT(A)-1, Hyderabad, dated 2.8.2017. 2. Brief facts of the case are that the assessee company filed its return of income for the A.Y. 2008-09 on 29.09.2008 declaring an income of ₹ 2,43,01,460/- u/s. 115JB of the Act and 'nil' income under the normal provisions of the I.T. Act. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance cannot be made. It was also denied that the Sheetal Trading Co. was a related party. The Assessing Officer however, was not convinced with the assessee's contentions and therefore, disallowed a sum of ₹ 3.5 lakhs u/s. 36(I)(iii) of the Act. He also made disallowance of ₹ 3.25 lakhs which was the amount claimed to have been paid by the company to the ROC for increase in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Crores (Share Capital ₹ 7,75,13,936 and interest free loans or ₹ 6,38,02,005/- while the interest free advance during the year are only ₹ 2.75 crores. 4. The net interest tree loans burrowed during the year is ₹ 4,65,54,163 and increase in share capital during the year is ₹ 94,14,600/- and the profit during the year is ₹ 2,12,03,592/-, The total interest f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of its own interest free funds being much more than the advances made as interest free loans needs verification. In view of the same, we deem it fit and proper to set aside the issue to the file of the Assessing Officer for denovo consideration in accordance with law. Needless to mention that the assessee shall be given a fair opportunity of hearing. 5. In the result, assessee's appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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