TMI Blog2023 (2) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... e is left with sufficient time to pay the sundry creditors and during this gap, assessee is possessed with surplus funds, which can be used for other business purposes. Since details have been placed before us, which are part of the audited financial statements and remain uncontroverted, we are inclined to hold that the assessee has sufficient interest free funds available to give interest free funds and, therefore, the ld. CIT(A) was not justified in confirming the disallowance of interest expenditure - Appeal of assessee allowed. - I.T.A. No. 159/Kol/2022 - - - Dated:- 20-2-2023 - SHRI RAJPAL YADAV , HON BLE VICE PRESIDENT And DR. MANISH BORAD , HON BLE ACCOUNTANT MEMBER For the Assessee : Shri Miraj D. Shah , A. R. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to have accepted the submission of assessee and should have allowed the relief holding the disallowance of Rs. 11,74,989/- as unjustified. 5) We crave leave to add, alter, amend, modify or withdraw any grounds of appeal on or before the date of hearing. 3. From perusal of the above grounds we note that the only effective issue raised is disallowance of interest paid of Rs.11,74,989/- 4. Brief facts relating to this issue are that the assessee which is a private limited company engaged in manufacturing of jute goods. It declared income of Rs. 13,31,340/- under the e-return filed on 24/09/2012. The case being selected for scrutiny through CASS followed by serving of notice u/s 143(2) 142(1) of the Act. The ld. Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee stated that interest free funds were available and to justify the same filed the following details:- Interest Free Funds in form of: 31.03.2012 31.03.2011 Share Capital Reserves Surplus 26,26,873 14,90,782 Deferred Tax Liabilities 2,44,199 1,28,902 Long term Provisions 88,11,334 52,26,117 Trade Payables 21,05,51,623 17,69,52,554 Other Current Liabilities 3,76,37,074 1,57,23,523 (Except ..... X X X X Extracts X X X X X X X X Extracts X X X X
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