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of <h1>Court dismisses revenue's appeals & assessee's cross-objections on interest disallowance, except one, for Assessment Years 2002-05.</h1> <h3>ACIT-11 (1), Mumbai Versus M/s. Livewire Programme Trading Co. P. Ltd. And (Vice-Versa)</h3> ACIT-11 (1), Mumbai Versus M/s. Livewire Programme Trading Co. P. Ltd. And (Vice-Versa) - TMI Issues involved:- Interest disallowance u/s 36(1)(iii) for Assessment Years 2002-03 to 2004-05.Analysis:Issue 1: Interest disallowance u/s 36(1)(iii) for AY 2002-03:- The revenue contested the Ld. CIT(A)'s order directing to allow interest paid to a company as business expenditure.- The reassessment proceedings were triggered based on interest disallowance in AY 2005-06.- The Ld. AO alleged that the interest payment was not in business expediency and disallowed it.- The Ld. CIT(A) upheld the reassessment proceedings but deleted the disallowance on merits.- The Tribunal affirmed the decision of Ld. CIT(A) based on commercial expediency and necessity of the expenditure.- The reassessment proceedings were found to be based on the same grounds as AY 2005-06, where the disallowance was deleted.- The appeal was dismissed, and the cross-objections were also dismissed as the issue was covered in the assessee's favor.Issue 2: Interest disallowance u/s 36(1)(iii) for AY 2003-04:- The Ld. CIT(A) held that reopening u/s 147 was not sustainable, and the issue on merits was not adjudicated.- The issue on merits was covered in the assessee's favor by the Tribunal's decision for AY 2005-06.- The revenue's appeal was dismissed as infructuous, and the assessee's cross-objections were allowed.Issue 3: Interest disallowance u/s 36(1)(iii) for AY 2004-05:- The Ld. CIT(A) upheld the reassessment proceedings but adjudicated the issue in the assessee's favor based on the appellate order for AY 2005-06.- The revenue's appeal and the assessee's cross-objections were dismissed based on the same grounds as AY 2002-03.Conclusion:- The revenue's appeals and the assessee's cross-objections for all three assessment years were dismissed, except for one cross-objection for AY 2003-04, which was allowed.
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