TaxTMI 
TaxTMI 
2013 (5) TMI 77
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.... 1,81,47,080/- in respect of various loans amounting to Rs. 19,41,89,941/- availed by the company at the rate of 9 per cent. The appellant had shown an amount of Rs. 1,47,25,451/- as advance recoverable and Rs. 25,18,705/- as deposits. The total loans and advances given to various persons except Government authority was Rs. 1,72,44,156/-. The appellant received interest of Rs. 4,45,321/- charged at the rate of 3 per cent (approximately).The appellant paid interest on the loan taken by it but interest had not been charged on the advances as mentioned above. Thus, the appellant on one hand had incurred substantive interest expenses on the other hand had given interest free loans. The interest expenses attributable to such advances were, there....
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....on and support to fulfill the personal need of the employee. I find no merit in the submission of the appellant. It is seen that the appellant on one hand has incurred substantial interest expenses and on the other hand has given interest free loans and the interests attributable to such advances are not for business purposes and required to be disallowed which the AO has done. The appellant has also not proved the nexus of interest free funds vis-à-vis lending to the employees. In view of the above, the disallowance made by the A.O is confirmed. The ground of the appellant is hereby dismissed." 5. Now, the assessee is before us. The learned counsel for the appellant contended that the appellant had interest free fund available with....
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....CIT(A) has no power to set aside the issue back to the stage of assessment because of the amendment in section 251(1) with effect from 01/06/2001 through which the power of set aside had been withdrawn. We are in agreement with the arguments of the ld. AR and considering the totality of the facts and circumstances of case, reverse the findings of the ld. CIT(A) and direct to delete the addition. Ground is allowed." In the case of Guruji Shree Sandipani Education Foundation (supra) identical issue had been considered by the Bench and after following the decision of CIT vs. Reliance Utilities and Power Ltd (2009) 313 ITR 340 (Bombay), the assessee's appeal was allowed in favour of the assessee. Therefore, he requested to delete the addition....