TMI Blog2019 (4) TMI 1990X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT (LTU) Vs. Reliance Industries Ltd. [ 2019 (1) TMI 757 - SUPREME COURT ] - The orders of the lower authorities are set aside and the matter is remanded to the Assessing officer to decide the issue afresh as per the observations made above. Disallowance of expenditure - addition of the Diwali Expenses, Gardening expenses, Printing Stationery and website promotion expenses on the ground that the same were not properly vouched - HELD THAT:- For nature of the expenditure i.e. as Diwali expenses, gardening expenses, printing and stationary and website promotion expenditure incurred which are usually incurred in day to day business activity and also considering the smallness of the amount and further submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be capitalized up to the end of the financial year. The assessee submitted that the interest on term loan taken for the purchase of machinery had been duly capitalized and that the funds used for building were out of own funds / interest free funds available with the assessee. However, the Assessing officer observed that the entire amount of building construction and machinery installation and capital advance was much more than the term loan utilized. In the absence of any specific details, the Assessing officer worked out the notional interest expenditure which was required to be capitalized u/s s 36(1)(iii) of the Act and added the same to the income of the assessee. 5. Being aggrieved by the order of the Assessing officer, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... file of the Assessing officer to duly consider the aforesaid contention of the assessee, examine the details of the finances available with the assessee vis-a-vis amount capitalized by the assessee and decide the issue afresh in the light of the decision of the Hon'ble Supreme Court in the case of CIT (LTU) Vs. Reliance Industries Ltd. (supra). The orders of the lower authorities are set aside and the matter is remanded to the Assessing officer to decide the issue afresh as per the observations made above. In the result, the appeal of the assessee is treated as allowed for statistical purposes. ITA No. 1451/Chd/2018 9. The assessee in this appeal has raised the following grounds of appeal: 1. That order passed u/s 250(6) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meet the investment / interest free advances / capital work in progress, made by the assessee, however, the Ld. CIT(A) held that since the funds used by the assessee were out of mixed funds, hence, the provisions of sec 36(1) (iii) of the Act have been rightly invoked by the Assessing officer. 13. Before us, the Ld. Counsel for the assessee has submitted that the assessee was possessed of sufficient own funds to meet the investments / capital advances. That the assessee company during the year raised funds by way of share capital to the tune of ₹ 37.79 crores which were credited to its cash credit account /current account. That the sale proceeds of the assessee company were also credited to these accounts and that these funds have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total expenses of ₹ 4,27,541/-, a single bill amount of ₹ 3,75,000/- was paid through cheque. Likewise, the expenses on website promotion, most of the debits are out of the last years prepaid expenditure carried over to the year under consideration and that no cash expenditure were incurred during the year. That similar was the position of disallowance made out of other two expenditure i.e. printing stationary and gardening expenses. However, the Ld. CIT(A) gave part relief to the assessee and confirmed the remaining expenditure for want of proper vouchers. 15. We have considered the rival submission on this issue. Considering the nature of the expenditure i.e. as Diwali expenses, gardening expenses, printing and stationa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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