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of <h1>ITAT Delhi: Appeal partially allowed, interest issue remitted, various expenses disallowance set aside.</h1> <h3>Amarpali International Versus Assistant Commissioner of Income, Tax, Circle 30 (1), New Delhi</h3> The ITAT Delhi partially allowed the appeal filed by the assessee, remitting the issue of interest disallowance back to the Assessing Officer and setting ... - Issues involved: Disallowance of interest, disallowance of business development expenses, disallowance of telephone expenses, disallowance of electricity and water expenses, disallowance of legal and professional expenses, charging of interest u/s 234B and 234C.Disallowance of interest:The Assessing Officer disallowed interest amounting to Rs. 1,61,226 as non-business expenditure due to interest-free advances given by the assessee. The Commissioner of Income Tax (Appeals) upheld this disallowance. However, the ITAT Delhi remitted the issue back to the Assessing Officer to establish a nexus between interest-bearing funds and interest-free advances, emphasizing the need for a proper finding on this matter.Disallowance of business development expenses, telephone expenses, electricity and water expenses, and legal & professional expenses:The Assessing Officer made disallowances on an estimate basis for various expenses. The Commissioner of Income Tax (Appeals) confirmed some disallowances but modified others. The ITAT Delhi found that the disallowances were made without specific instances or cogent reasons, solely on an estimate basis. Therefore, the ITAT Delhi set aside the orders of the authorities and decided in favor of the assessee, stating that such disallowances were not sustainable without concrete evidence.Charging of interest u/s 234B and 234C:The assessee contended that interest under section 234B and 234C was wrongly charged. However, the judgment did not provide further details or outcomes related to this issue.In conclusion, the ITAT Delhi partially allowed the appeal filed by the assessee for statistical purposes, remitting the issue of interest disallowance back to the Assessing Officer and setting aside the disallowances of various expenses made on an estimate basis.
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