2016 (4) TMI 162

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....available on record and the decisions relied upon. 3. The relevant facts are that the assessee company is engaged in the business of manufacturing of plastic, processing machine and its parts. In the assessment order, the Assessing Officer noted that the assessee had paid interest to the banks on secured loans borrowed for business purpose but the profit and loss account of the assessee revealed that the assessee had paid a sum of Rs. 41,65.686 to the banks on account of interest @ 15% per annum, whereas assessee had provided its director interest free advances. The Assessing Officer accordingly disallowed Rs. 41,65,686 under sec. 36(1)(iii) of the Act, which has been upheld by the Learned CIT(Appeals). 4. In support of the grounds on the....

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....e the disallowance in question, upheld by the Learned CIT(Appeals). The Learned AR also referred page Nos. 33 to 87 of the paper book which are copies of statutory audit report, tax audit report, balance sheet and profit and loss account with schedule; sanction letter of credit facilities/term loan/car loan; ledger accounts of interest payments; ledger accounts of Shri R.P. Shukla along with relevant pages of bank statement and sale deed of Gr. Noida Plot. 4.1 The Learned AR submitted further that the decision relied upon by the Learned CIT(Appeals) having distinguishable facts are not helpful to the Revenue in the present case as in those cases borrowed funds were utilized for providing interest free loans for other than business purposes....