9911796707
TMI Blog2018 (6) TMI 1850X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and order passed by the Income Tax Appellate Tribunal (hereinafter referred as "the learned Tribunal") passed in ITA No. 2709/AHD/2016 for A.Y. 2012-2013 revenue has preferred Tax Appeal No. 615 of 2016 with following proposed questions of law: "2(A) Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance on interest free loans and advances amount to Rs. 49,79,253/-? (B) Whether the Appellate Tribunal has erred in law in not holding that the assessee has failed to prove that interest expenses incurred wholly and exclusively for business? (C) Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 51,00,000/- made u/s. 68 of the Act? (D) Whether the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 49,79,253/- and making the addition of Rs. 51,00,000/- under Section 68 of the Act, the Assessee preferred the appeal before the learned CIT (A). The learned CIT (A) dismissed the appeal and confirmed the dis-allowance and also the addition. 7. Feeling aggrieved and dis-satisfied by the order passed by the learned CIT(A), the Assessee preferred the appeal before the learned ITAT being ITA No. 2709/Ahd/2016 (for A.Y. 2012-2013). Similar appeal was preferred by the learned Assessee challenging the order passed by the learned CIT(A) (for A.Y. 2013-2014) for making disallowance of Rs. 43,59,961/- on interest free loans and advances. 8. By impugned common judgment and order, the learned Tribunal has allowed both the appeals preferred by the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es below. A perusal of the documentary evidences shows that assessee was having interest free funds available with it totaling to Rs. 48.58 crores and the impugned advances were at Rs. 12.78 crores. This shows that the interest free funds available with the assessee were far more in excess of the interest free advances. We further find that long term loan from banks, maturity term loan and unsecured loans taken by the assessee amounting to Rs. 32.80 crores whereas the total project expenses which included fixed assets and capital work in progress amounted to Rs. 64.76 crores. This shows that the term loans taken by the assessee have been utilised in fixed assets and capital work in progress." 12. Considering the facts and circumstances and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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