2014 (6) TMI 360

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....9-2010, dated 30.09.2009 declaring his income as D20,60,100/-. From the scrutiny assessment of the return of income for assessment years 2007-08 & 2008-09 of 'CCCPL' it transpired that more than D 2 Crores has been advanced to the assessee as loan. A notice u/s. 148 of the Income Tax Act, 1961 (herein after referred to as 'the Act') was issued to the assessee. In re-assessment proceedings addition of D14,34,606/- was made on account of perquisites u/s.2(24) (iv) (interest free loan) availed by the assessee. Aggrieved against the assessment order dated 26.12.2011 passed under section 143(3) r.w.s 147 of the Act, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 3. In appeal, the Commissioner of Income Tax (Ap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o pay interest on the borrowings for funding the assessee. The ld.DR further submitted that payment of interest to 'CCCPL' in subsequent assessment year is only an after thought. 5. None has appeared on behalf of the assessee despite service of notice. We have heard the submissions made by the ld. DR and have also perused the orders of the authorities below. An addition has been made u/s. 2(24)(iv) of the Act treating interest amount paid by 'CCCPL' on borrowings as perquisites in the hands of the assessee. A perusal of the impugned order shows that 'CCCPL' had not advanced the sum from borrowed funds. The amount advanced to the assessee has been duly reflected in the financial statement of 'CCCPL'. Earlier, in the period relevant to asses....