TMI Blog2022 (2) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Mepco Industries Ltd.[ 2006 (11) TMI 164 - MADRAS HIGH COURT] . If it is assumed that the inquiry was not correct or conducted properly, therefore, the revisional power u/s. 263 of the Act is not liable to be invoked in view of the decision of MOIL Ltd.[ 2017 (5) TMI 258 - BOMBAY HIGH COURT] , CIT Vs. Development Credit Bank Ltd. [ 2010 (2) TMI 161 - BOMBAY HIGH COURT] , CIT Vs. Vikas Polymers [ 2010 (8) TMI 745 - DELHI HIGH COURT] . Taking into account of all the facts and circumstances, we set aside the order passed by PCIT in question and allowed the appeal of the assessee. - I.T.A. No. 762/Mum/2021 - - - Dated:- 28-1-2022 - Amarjit Singh, Member (J) And Amarjit Singh, Member (A) For the Appellant : Prakash Jhunjhunwala For the Respondents : Mahesh Akhade, DR ORDER Per Amarjit Singh, JM The assessee has filed the present appeal against the order dated 30.03.2021 passed by the Principal Commissioner of Income Tax-06, Mumbai [hereinafter referred to as the PCIT ] relevant to the A.Y. 2015-16 in which the Principal Commissioner of Income Tax-06 has invoked the provisions u/s. 263 of the I.T. Act, 1961. 2. The assessee has raised the following g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estment Co. Ltd. 10,46,965 4 Jatayu Textile Industries Limited 17,56,617 5 Kajal Synthetic Silk Mills Limited 7,02,93,469 6 Raj Resorts Pvt. Ltd. 1,00,00,000 7 Mansoon Trading Company Limited 29,89,527 8 Meenakshi Steel Industries Limited 1,29,79,596 9 Nilkanth Engineering Limited 2,01,41,227 10 Sushree Trading Limited 4,68,47,268 Total 178,42,70,069/- It was also observed that the long term borrowing was of ₹ 117,35,69,248/- on which the assessee has claimed finance costs of ₹ 11,49,54,281/- in the profit and loss account. Further, the long term and short term loans and advances was given of ₹ 79,84,42,190/- and ₹ 1,29,70,062/- respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.) 1 Base Industries Ltd. (PAN: AAACB8821F) 50,00,000 4,90,000 2 Better Equity Services Ltd. (PAN: AACCR6479B) 9,88,66,099 96,88,878 3 Blue Square Properties Pvt. Ltd. (PAN: AADCB1801C) 3,29,00,000 32,24,200 4 Osiris Infotech Pvt. Ltd. (PAN: AAAC06865G) 95,00,000 9,31,000 5 Osiris Realty Pvt. Ltd. (PAN: AABC06617R) 2,59,16,000 25,39,768 6 Suyog Towers Pvt. Ltd. (PAN: AAACR8828G) 1,80,00,000 17,64,000 7 Chamatkar Finstock Pvt. Ltd. (PAN: AACCG4723F) 8,25,000 80,850, 8 Greenback Commodities P. Ltd. PAN: AACCG4723F 5,32,640 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Engineering Pvt. Ltd. PAN AAACB9795N 2,65,00,000 25,97,000 26 Daksh Developers PAN AAHFD0864C 5,18,00,000 50,76,400 27 Della Enclave Pvt. Ltd. PAN AACCM4457C 2,66,47,019 26,11,408 28 Marudhara Buildwell Pvt. Ltd. PAN AAGCM3644M 5,85,00,000 57,33,000 29 Opening Interest Capitalized 3,24,59,827 31,81,063 30 Burgar King Restaurant 1,00,00,000 9,80,000 Total 80,84,42,190 7,92,27,335 5.1 A perusal of the detailed working submitted by the assessee shows that the interest on borrowed funds attributable to the advances amounts to ₹ 7,92,27,335/and the same was debited in the P La/c. Section 36 of the Act provides the deduction in respect of capital borrowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance recoverable of ₹ 1 crore along with their address; (v) Party-wise details of interest paid of ₹ 11.49 crores. (vi) Confirmation of brokers account on profit/loss in trading in commodities; (vii) Working of interest capitalised to properties/Investment account. I hope the above details would satisfy the requirements and oblige. A letter of authorities in my favour is enclosed herewith. Thanking you, Yours faithfully, Chartered Accountant. 7. The submission of letter dated 30.05.2017 is hereby as under:- To, Dy. Commissioner of Income Tax, Circle-14(2)(2), Mumbai. Dear Sir, Re: Submission in the assessment matter of M/s. Niagara Financial Consultants Pvt. Ltd. Asst. Year; 2015-16 PAN -AACCN1918R. In response to notice u/s. 143(2) and under instruction from my abovesaid client, I hereby state as under:- In response to notice u/s. 143(2) and under instruction from my abovesaid client, I hereby state as under:- The assessee is a private limited company engaged in the business of providing finance to developers and builders, buying and selling in properties finance related activit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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