2017 (7) TMI 97

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....or booking premium space for display of its various products." 4. Brief facts relating to the issue are that during the course of assessment proceedings, the Assessing Officer noted that the assessee had debited an amount of Rs. 2 lacs to the Profit & Loss Account as Listing Fee. On confronting the same to the assessee, the assessee contended that the Listing Fee was paid to one Vishal Retails Pvt. Ltd. as refundable security on 16.6.2008 to secure space in the various malls for retail sale of their products. The assessee further contended that due to financial problem of the company, it was requested for refund of the deposit but despite lot of efforts, no money was refunded. The assessee contended that due to non recovery of the securi....

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.... 2 lacs pertained to security paid to Vishal Retails Pvt. Ltd. on account of securing space in various malls for retail sale of the products of the assessee. The contention of the assessee is that this security amount has been written off in the year since the assessee tried to recover the same due to financial problems being faced by it but was unable to do so. Thus, as per the assessee, due to non recoverability of the said security deposit, a business loss had accrued to the assessee which it had claimed as such by writing off the security deposit in the Profit & Loss Account. We find that other than claiming the same to be a business loss no evidence of any sort has been produced by the Ld. counsel for the assessee before us or even bef....

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.... computed the interest chargeable to Sahaj Honey Bee Farms at Rs. 7,64,053/- as against Rs. 5,75,500/- charged by the assessee. He, therefore, made a disallowance of Rs. 1,88,553/- under section 36(1)(iii) of the Act on account of interest. The CIT (Appeals) upheld the disallowance made following the decision of the Hon'ble Punjab & Haryana High Court in the case of Abhishek Industries Limited (supra). 11. Before us, the Ld. counsel for the assessee contended that it had enough own interest free funds to make the aforoestated advances and, therefore, the disallowance made was unwarranted. The Ld. counsel for the assessee drew our attention to the profits earned by the assessee during the year amounting to Rs. 2,20,50,090/- and to the....