TaxTMI 
TaxTMI 
2014 (8) TMI 724
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....s, the assessee was asked to file details in respect of the expenses debited in profit & loss account amounting to Rs..11,39,93,239/-. The assessee filed details in respect of few items of expenses amounting to Rs..3,81,10,692/-. On receiving no details pertaining to expenditure of Rs..7,58,82,547/-, the AO proceeded by disallowing 15% working out to Rs..11,382,382-. The assessee carried the matter before the CIT(A) and filed complete details in respect of expenses debited to profit & loss account. The CIT(A) has considered the grievance of the assessee at para 6.1 of his order and has held that for want of non-availability of details from the assessee, the AO have no option but to make disallowance on estimated basis and the disallowance i....
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.... site expense, commission, bad debts and miscellaneous expenses and some other expenses. The AO has made ad-hoc disallowance on 15% in respect of expenditure amounting to Rs..7,58,82,547/-. Considering the facts in totality in the light of Suo Moto disallowances by the assessee further disallowance by the AO seems unwarranted as the necessary details were much available before the ld. CIT(A) which has not been considered by the CIT(A) and since the assessee itself has disallowed expenses a further disallowance is uncalled for. We therefore set-aside the findings of the CIT(A) and direct the AO to delete the addition of Rs..11,382,382/-. 5. First grievance of the assessee is allowed. 6. The second grievance relates to attribution of es....
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....est free loan under sales tax deferral scheme. On these borrowings, the assessee has paid interest amounting to Rs..1.99 crores out of which interest on debentures is Rs..1.44 cores and other interest is Rs..54.83 lakhs. So far as, interest on debentures is concerned no attribution is required. However, considering the nature of the secured loan certain part of the interest appears to be pertaining to some capital assets. We therefore restore this issue to the files of the AO. The assessee is directed to file the detail of interest amounting to Rs..54,83,286/- and justify that no interest is attributable. The AO is directed to examine such details and decide the issue afresh considering the interest amounting to Rs..54,83,286/- only. 8. ....
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....r system, the interest is to be taxed under the head 'income from other sources'. The ld. CIT(A) confirmed the findings of the AO relying upon the decision of the Hon'ble Supreme Court in the case of Pandian Chemicals Ltd.129 Taxman 539. Before us, the ld. Counsel stated that deposits were made out of commercial reasons to avail facilities from the bank and therefore interest received on such deposits should be treated as business income. Per contra, the ld. DR supported the findings of the lower authorities. A perusal of schedule 'G' of current assets forming part of the balance sheet show that the fixed deposits are lodged with banks as margin for funding working capital facilities, which shows that the fixed deposits have a direct nexus ....