2015 (10) TMI 2496

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.... citing reasons for delay. After perusal of same, we are satisfied that the delay in filing of appeal is not intentional or deliberate. The delay of 298 days in filing of the appeal is condoned and the appeal is admitted to be heard on merits. 3. The only issue raised in the appeal is against disallowance of interest Rs. 6,56,250/-, for allegedly advancing interest bearing fund towards interest free advances. The assessee filed its return of income for the assessment year 2007-08 on 22-10-2007, declaring total income of Rs. 2,12,19,428/-. The case of the assessee was selected for scrutiny and accordingly, notice u/s. 143(2) was issued to the assessee on 29-08-2008. During the course of scrutiny assessment, the Assessing Officer inter ali....

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....partment submitted that, the Assessing Officer did not have sufficient funds at the time of advancing interest free loan to Shri N.V. Jadhav. The Assessing Officer has specifically recorded the findings in this regard, that at the time of advancing interest free loan in the month of August, the cash flow statement shows that the assessee was not having own funds to the extent of interest free loan advanced. The ld. DR further submitted that the assessee has not been able to show any commercial expediency for advancing interest free loan out of interest bearing funds. Hence, the disallowance of interest has been rightly made by the authorities below. To support of his submissions, the ld. DR placed reliance on the decision of Hon'ble Sup....