TaxTMI 
TaxTMI 
2017 (12) TMI 655
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....ed fund has been used for the purpose of assessee‟s business. 2. The Id. CIT(A) has failed to appreciate that the A.O. himself has mentioned in the assessment order that "as the assessee company was running its business of manufacture of sugar on borrowed funds and was also claiming a substantial interest expenses on its term loans and cash credit limits". Therefore, having noted this finding by the A.O. the interest expenditure should have been allowed by the CIT(A) as normal business expenditure and the ground of the assessee should have been allowed. 3. The CIT(A) has erred in not following the precedent in favour of the assessee in the earlier years. Therefore, also the disallowance of interest should be deleted. 4. The Id. CIT(A) has erred in treating the ground relating to treatment of interest earned Rs. 1,01,13,216/- as alleged income from other sources instead of business income as not pressed. The assessee has pressed the ground which should have been accepted and adjudicated by the CIT(A). 5. Without prejudice to Ground No.4, the assessee submits that details were provided to the A.O. who has reproduced in his order that the inte....
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....peal of the assessee was partly allowed. The assessee aggrieved with the order of the ld CIT(A) preferred appeal before us. 4. The ground No. 1 of the appeal is with respect to the claim of interest expenses disallowed by the ld AO of Rs. 1428923/-. Ground No. 2 and 3 are also supporting, the issue in the ground No. 1. 5. The ld AR submitted that this issue is squarely covered in favour of the assessee by the decision of the coordinate bench in its own case for AY 1999-2000. 6. The ld DR also fairly conceded the same. 7. We have carefully considered the rival contentions and also perused the orders of the lower authorities. The assessee has submitted a copy of balance sheet of the company wherein the own fund shown by the assessee are far in excess of non-interest bearing advances given. The coordinate bench has considered this issue in assessee's own case in ITA No. 1033/Del/2014 for the Assessment Year 1999-2000, in detail and deleted the interest disallowance vide para No. 6 as under:- "6. We have carefully considered the rival contentions and also considered the orders of the lower authorities. The Ld. CIT A has deleted the addition holding that no interest....
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....ore the first appellate authority cannot be agitated now. 12. We have carefully considered the rival contentions and also perused the affidavit given by the assessee as well as the relevant letter filed before the ld CIT(A). It is apparent that in the chart submitted before the ld CIT(A) this issue has been raised. Even otherwise the issue needs to be decided on the merits of the case. Therefore, we set aside ground No. 4, 5,7 and 8 back to the file of the ld CIT(A) with a direction to decide the issue on merits. 13. Ground No. 6 is not pressed before us therefore, same is dismissed. 14. Ground No. 9 of the appeal is with respect to disallowance of interest of Rs. 237600/- on advance given to M/s. SK Engineering. As we have already decided ground No. 1 to 3 of the appeal wherein in the advance of Rs. 98.85 lacs this party was covered. Therefore, for the same reason we direct the ld Assessing Officer to delete the disallowance of Rs. 237600/- on advance to this party. Ground No. 9 of the appeal of the assessee is allowed. 15. In result ITA No. 224/Del/2009 is partly allowed. 16. In ITA No. 3969/Del/2009 for AY 2004-05 is against the order of the ld CIT(A)-XIX, New Del....
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....of the assessee reflected in the books are counter checked by the other Govt Authorities, audited by Statutory Auditors and therefore the ground of the assessee should have been allowed and addition as alleged unaccounted income of stock not shown in books. 3. The CIT (A) has erred in confirming the order of the AO in respect of the following:- a) Telephone Expenses (Adhoc Disallowed) 52000 b) Estimated addition of Interest on NSC (estimated Adhoc amount) 300000 The telephone expenses are to be allowed as they re incurred for the purpose of business. The estimated addition to income should be deleted. 4 Without prejudice to ground no 3, if the investment in NSC s being Rs. 283105, the maximum interest that is available for the last year is Rs. 63416. Therefore the addition of Rs. 300000/- is excessive. 5. The above grounds are independent and without prejudice to one and another." 20. The first ground of appeal is not pressed and therefore, same is dismissed. 21. Ground No. 2 of the appeal is against the addition confirmed by the ld CIT(A) on account of closing stock of Rs. 12769380/-. 22. The brief facts are narrated i....
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....r and reconcile the difference. The ld Assessing Officer is directed to verify the claim of the assessee and if the stock register balance with the Excise authorities and the bank are not reconciled, to that extent the addition may be made. Accordingly Ground No. 2 of the appeal of the assessee is allowed with above direction. 26. Ground No. 3 is with respect to ad hoc disallowance of Rs. 52000/- made by the ld Assessing Officer pertaining to Mr. Narang and his family out of miscellaneous expenses. The ld Assessing Officer noted that the assessee did not show that how the same have been incurred for the purpose of the business. The ld CIT(A) also upheld the disallowance. The assessee submitted that this is the telephone expense of the director for official use which was reimbursed to him. The ld DR relied on the orders of the lower authorities. 27. We have carefully considered the rival contentions and we direct the ld Assessing Officer to delete the disallowance of Rs. 52000/- out of telephone expenditure as the above expenditure was incurred by the company for the director for official use. 28. The next addition of Rs. 3 lac was made by the ld Assessing Officer on accoun....