TMI Blog2022 (7) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... CHNY/2019 - - - Dated:- 8-7-2022 - SHRI MAHAVIR SINGH , VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL , ACCOUNTANT MEMBER Appellant by : Shri T. Banusekar , CA Respondent by : Shri D. Hema Bhupal , JCIT ORDER Per Mahavir Singh , VP This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-9, Chennai in I.T.A. No. 95/CIT(A)-9/2011-12 dated 22.05.2019. The assessment was framed by the Asst. Commissioner of Income Tax, Company Circle 2(3), Chennai for the assessment Year 2009-10 u/s. 143(3) of the Income Tax Act, 1961, (hereinafter 'the Act') vide order dated 30.12.2011. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear under consideration and Rs. 1,00,48,711/- on account of investments made in the earlier years is confirmed. Therefore, the balance amount of Rs. 26,90,960/- is deleted. Aggrieved, now assessee is in appeal before the Tribunal. 4. Before us, the ld. AR for the assessee filed complete details of reserves and surplus as on 31.03.2019 and the relevant details are as under:- Reserves and Surplus as on 31.03.2009 Assessmen t year Opening Reserve Profit during the year Closing Reserve Investment in Associate Firm Incremental Investment Difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pg No.6 of CIT(A) Order 2009-10 17,47,17,331 (2,73,598) 17,44,43,733 3,31,66,838 12,48,71,211 4,95,72,522 Pg No.29 of Page Book Pg No.29 of Page Book Pg No.27 of Page Book Pg No.6 of CIT(A) Order In view of the above chart, the ld. AR stated that the assessee has interest free funds available which are much more than the interest bearing funds supposed to have been given for the purpose of interest free advances. According to ld. AR, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertained to earlier years. 2. While examining the bank accounts and other submission it was found that the assessee has taken loan during the month of April. May June and the investments made in the firm is also May June. So it is clear that the assessee has utilized the borrowed money to make investment in the form to the extent of Rs. 85,50,000/-. So the interest amount of Rs. 10,25,686 (Rs. 83,50,000 x 15.25) to the extent of investment made out of borrowed amount during the year may be disallowed and the assessee also accepted the same. 3. Mere a partner in the firm and the business of the appellant has been carried through the partnership firm as per the MOA cannot be criteria that the capital contribution is for the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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