TMI Blog2023 (5) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) while upholding the order of AO has given a finding that no details were furnished by assessee about the amount the money being lent except stating that debts are regular business debts given to Escorts Finance Ltd. CIT(A) has further noted that assessee had also failed to establish that assessee had substantial interest free funds from which interest free advances were given. Before us, also assessee has not placed any material on record to demonstrate any fallacy in the findings of CIT(A) nor has placed any material on record to demonstrate that the amount which is stated to have been lent to Escorts Finance Ltd. is a regular business debts and lent out in earlier years. Considering the totality of the facts, we find no reason to interfere with the order of CIT(A) and thus the ground of assessee is dismissed. - ITA No. 1072/Del/2019 - - - Dated:- 9-5-2023 - Sh. Anil Chaturvedi, Accountant Member And Sh. Yogesh Kumar Us, Judicial Member For the Assessee : None For the Revenue : Shri Kanv Bali, Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: This appeal filed by the assessee is directed against the order dated 18.12.2018 of the Commissioner of Income Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing sent to Faridabad and Greater Kailash addresses were also returned back with a comment Left . Further, the notice issued by the Registry through RPAD was returned unserved with the postal remarks refused . Assessee has not filed any document informing the change of address. Considering the aforesaid facts, we have no option except to dispose of the appeal on merits, after hearing the Ld. D.R. 6. Ground No.1 and its sub ground is with respect to the disallowance of Long Term Capital Loss of Rs.75,35,065/-. 7. During the course of assessment proceedings and on perusing the computation of total income, AO noted that assessee has claimed Long Term Capital Loss of Rs.72,47,870/-. Assessee was asked to produce documentary evidences to support the claim. Assessee filed the submissions but the same was not found acceptable to AO. AO noted that the details submitted by assessee did not establish the year of acquisition of shares of M/s. Escorts Limited on the sale of which assessee has claimed Long Term Capital Loss. AO also noted that assessee has not produced any proof regarding year of acquisition of shares as well as the value of shares in the year of acquisition. He the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o AY 2003- 04 and has already elapsed in AY 2011-12 after eight years. Further, by Finance Act, 2004 exempted long term capital gain on sale of listed securities which has suffered security transaction tax, therefore any further sale of investment by the assessee company in which it makes gain, will in any case be exempt and thus long term capital loss will actually left long term capital loss actually lapsed in its hands. Considering the above fact, long term capital loss claimed by the appellant could not be allowed and addition made by the AO on account of Long Term Capital Loss at Rs. 75,35,065/- Is hereby confirmed. 8. Aggrieved by the order of CIT(A), assessee is now in appeal before Tribunal. 9. Before us, Learned DR took us through the findings of AO and CIT(A) and supported the order of lower authorities. 10. We have heard the Learned DR and perused the material on record. The issue in the present ground is about the disallowance of Long Term Capital Loss. We find that CIT(A) while upholding the order at para 4.4 of the order has given a finding that assessee could not reconcile the investment in equity shares as claimed by it and as shown to have been purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t whereas it is paying interest @ 13% on inter corporate deposits received by it. The appellant has not furnished any other detail except stating that debts are regular business debts given to Escorts Finance Ltd. and on similar issue CIT(A) has deleted addition on notional charging of interest. Appellant failed to establish that inter corporate deposits for the purpose of business and it is having substantial Interest free funds out of which that interest free advances were given. It is held by Punjab Haryana High Court in the case of Abhishek Industries Ltd. Vs CIT [2006] 156 Taxman 257 (Punjab Haryana)/[2006] 286 ITR 1 (Punjab Haryana)/[20061 205 CTR 304 (Punjab Haryana) that once it is borne out from record that assessee had borrowed certain funds on which liability to pay tax is being incurred and on other hand, certain amounts had been advanced to sister concerns or others without carrying any Interest and without any business purposes, interest to extent that advance had been made without carrying any interest is to be disallowed under section 36(1)(iii) . 5.5 In the case of Punjab Stainless Steel Inds. Vs CIT Hon'ble Delhi High Court [2011] 196 Taxman 404 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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