TaxTMI 
TaxTMI 
2015 (5) TMI 1040
X X X X Extracts X X X X
X X X X Extracts X X X X
....o interest free loans given. 3. Facts of the case, in brief, are that the assessee is a company engaged in the business of services relating to accounting, project management, legal, finance procurement and compliances. It filed its return of income on 31-10-2007 declaring total income of Rs. 15,57,70,005/-. During the course of assessment proceedings the Assessing Officer noted that assessee has taken several loans during the year and has repaid some of them. The loans taken are both interest bearing and interest free. The assessee has also advanced loans to several persons. The loans advanced are also interest bearing as well as interest free. He further noted that the rate of interest varies from 6.5% to 30%. He, therefore, asked the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee funds advanced by the assessee were only Rs. 12,35,36,632/- as at the end of the year. As such the assessee had substantial own funds for the purpose of giving loans and therefore no disallowance could have been made. Various decisions were also brought to the notice of the CIT(A). It was further argued that identical issue has been decided by the CIT(A) in the preceding assessment year. 6. Based on the arguments advanced by the assessee and following the decision of the CIT(A) in assessee's own case in the immediately preceding assessment year the CIT(A) deleted the disallowance made by the Assessing Officer. 7. Aggrieved with such order of the CIT(A) the Revenue is in appeal before us. 8. The Ld.counsel for the assessee at the outse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unds have also been noted by the learned Commissioner (Appeals) which has been incorporated above in the forgoing paragraph. Based on these availability of funds, the learned Commissioner (Appeals) has held that interest free loan is out of these funds only. Such a finding of the learned Commissioner (Appeals) appears to be prima-facie correct. From the details, which has been submitted, it is seen that during the month of April 2005 itself, the assessee has received huge interest free loans which aggregated to more than Rs. 50 crores. Out of these funds, the assessee has also given interest free loans in the month of April. Besides this, if the availability of over all interest free loans has to be seen, then the assessee has received more....