2014 (1) TMI 1328

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....er for the sake of convenience. 2. First, we take up the Revenue's appeal, i.e.ITA No.2490/Ahd/2012 for AY 2008-09. The Revenue has raised the following grounds of appeal:-    1) The Ld.Commissioenr of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in deleting the disallowance of Rs.12,42,716/- made on account of interest expenses.    2) The Ld.Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in allowing the claim of TDS, in respect of income not included in the income of the Assessee for the year under consideration.    3) On the facts and in the circumstances of the case, the Ld.Commissioner of Income-Tax (Appeals)-XV, Ahmedabad ought to have uphel....

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.... National Highway Authority of India (NHAI) had awarded contract to the assessee and the assessee in-turn had given this work to the sub-contractor and in order to execute the work, the interest paid on mobilization advance by the assessee was in terms of the agreement executed with the NHAI. The ld.counsel for the assessee submitted that such money was given to the sub-contractor for execution of the work, therefore the AO was not justified in holding that there was no business expediency. He relied on the decision of the Hon'ble Apex Court rendered in the case of S.A.Builders Ltd. vs. CIT(Appeals) (2007) 288 ITR 01 (SC). 4. We have considered the rival submissions, perused the records and the judgement cited. From the records, it is ev....