TaxTMI 
TaxTMI 
2013 (11) TMI 150
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....of the case in sustaining disallowance of Rs. 1010167/- u/s 36(1) (iii) out of interest paid and the disallowance is in any case too excessive. 2. That the Id CIT (Appeals) has failed to appreciate that the debit balances in the concerned accounts were on account of business consideration and further that in some cases there were both debit and credit balances and no disallowance out of interest paid was called for and the disallowance is contrary to the facts and the circumstances of the case. 3. That the disallowance of interest @ 18% pa is in any case too excessive and unjustified. 4. That the appellant craves leave to add or amend any grounds of appeal at time of hearing." 3. Adjournment sought by the ld. &....
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.... amount (fixed asset) as the bills for the same were, either not received or misplaced. Ld. 'DR' stated that in view of the factual position, CIT(Appeals) held that the amount of Rs. 5,11,536/-, which is advanced to Shri Anil Kumar, from time to time or imprest given to the employee for meeting out various expenses and Rs. 6,08,178/- due from Shri Malkiat Singh, in the nature of trade debtor. Consequently, CIT(Appeals) directed AO to charge interest, subject to verification of facts, as submitted by the appellant. Ld. 'DR', further, stated that findings in respect of other parties, are also recorded by the CIT(Appeals) . 5. We have carefully perused submissions made by ld. 'DR' , assessment order and the appel lat....
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....ho is an employee was advanced from time to time for business purposes and has from time to time been adjusted against expenses incurred through him. As per the statements of account of Shri Malkiat Singh for the earlier years in which the debit balance arose, the debit is on account of hire charges of trucks which were shown by the assessee as its income for the relevant years. As such this amount of Rs. 608178/- due from him is also for business purposes and is a trade debtor. The amounts due from M/s. Disk India Pvt Ltd (500000) and M/s. Sonal Fabricators P Ltd. (1120000) are stated to have been paid for business purposes for the cost of fabrication of tank-lorry bodies. Certificate from Sonal Fabricators have also been filed. I....
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....rlier years. However, for the amounts advanced in the current year, I do not find force in the arguments of the Id counsel that these were for business purposes and the payments made in the current year under consideration are held to be for nonbusiness purposes on which proportionate disallowance out of interest is upheld. The disallowance of interest should be worked out for the period such amount has been outstanding. Similarly as regards the debit balances in the accounts of Vicky Carriers (Rs.6833492/-) and Rajiv Kapoor Transport (Rs. 1135051/-) are concerned, I do not find any force in the arguments of the ld counsel that these were for business purposes and the submission that there are two different accounts relating to the....