2013 (7) TMI 38

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....fter referred to as 'the Act') vide his order dated 12-12-2008 for assessment year (AY) 2006-07. 2. The first two issues in this appeal of Revenue is against the order of CIT(A) deleting the disallowance of interest written off and advances written off of Rs.88,050/- and Rs.12,500/- respectively. For this, Revenue has raised following ground Nos.1 and 2:- "1) "The Ld. C.I.T.,(A)-XX, Kolkata has erred on facts and in law to allow the disallowance of interest written off of Rs.88,050/- made by the Assessing Officer." 2) "The Ld. C.I.T.,(A)-XX, Kolkata has erred on facts and in law to allow the disallowance of advance written off of Rs.12,500/- made by the Assessing Officer." 3. We have heard rival contentions and gone through fact....

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....see file details of interest written off and that the same was offered for taxation in AY 2002-03. Further, the assessee has led evidences that M/s. Sleek Sales has become bad. In such circumstances, we set aside this issue to the file of Assessing Officer and re-direct him to allow liberty to assessee to file evidence and then decide this issue. Hence, these two issues of assessee's appeal are allowed for statistical purposes. 4. Coming to next issue in this appeal of Revenue is against the order of CIT(A) deleting the disallowance of interest on borrowed funds of Rs.13,16,080/-. For this, Revenue has raised following ground No.3:- "3) "The Ld. C.I.T.(A)-XX, Kolkata has erred on facts and in law to allow the addition of interest on b....

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....ually bank loans; moreover, the loans are fully utilized for the purposes of the business of the appellant. I find force in the arguments of the appellant. The facts are not disputed by the AO. I find force in the arguments of the appellant. The facts are not disputed by the AO. I am of the opinion, that, since the borrowed fund is fully utilized for the purpose of business, there is no justification for the AO to disallow the interest on borrowed fund. Ground no.4 is allowed." 6. We have heard rival contentions and gone through facts and circumstances of the case. We find that assessee could not prove that the interest free advances are treating advances as claimed by assessee before us now. But now the assessee has filed a list of inte....