TaxTMI 
TaxTMI 
2015 (3) TMI 1309
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....une dated 17.12.2012 relating to assessment year 2009-10 passed under section 143(3) of the Income-tax Act, 1961. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(A) erred on facts and in law in upholding disallowance of notional interest of Rs. 14,43,000/- on advances/share application money of Rs. 1,11,00,000/- to M/s. Shrinivas Machine Crafts P. Ltd. on the ground that the said advance was for acquiring shares. He failed to appreciate that the advance was in furtherance of the business of the assessee. He also failed to appreciate the arguments and contentions advanced in this behalf. 2. The appellant craves leave to add, alter, delete or substitute all or any o....
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....to 30.04.2008 and thereafter, for the balance period of the financial year, shares were allotted which had not yielded any income, hence, the interest on the same was disallowed under section 36(1)(iii) of the Act and total disallowance of Rs. 22,36,000/- was made. 4. The CIT(A) upheld the interest expenditure relatable to two advances made by the assessee i.e. M/s. Bison India Ltd. and Shri Manoj Ambike. As regards the advance of Rs. 1,11,00,000/- to M/s. Shrinivas Machine Crafts Pvt. Ltd., the CIT(A) noted that the same was given for acquiring shares, which could not be considered as expenditure in the nature of business. Therefore, disallowance of interest expenditure relatable to the same was upheld. The CIT(....
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....sp; Before the authorities below, the contention of the assessee was that these were the business advances and therefore, no disallowance of interest was called for. However, before us, the learned Authorized Representative for the assessee has raised a new plea that factually, there was no nexus between the borrowed funds and the advances made to the said parties. In support thereof, the assessee has furnished by way of additional evidence the bank statement showing working of bank account on the relevant dates of advances. The said evidences filed by the assessee are by way of additional evidence. However, since the additional evidence goes to the root of the issue, we admit the same and restore the issue back to t....
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....the view that the said creditors were bogus and had to be added as unverifiable creditors. However, letters were sent to the parties at the addresses given by the assessee calling for information under section 133(6) of the Act, but no response was received. The assessee was asked to produce parties along with books of account for verification and in the absence of any information or production of parties, the creditors to the extent of Rs. 4,56,45,562/- remained unverified and were added as income of the assessee. 12. Before the CIT(A), the assessee did not press the said ground of appeal and the same was dismissed as not pressed. 13. The assessee however, before us has furnished an application for adm....
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....fusion and the same may be sent back to the CIT(A) for adjudication. In respect of the genuineness of the creditors, the assessee has furnished on record additional evidence in the form of bank certificates for payment to the creditors, which were found to be non-genuine. However, in respect of the credits which have brought forward from the preceding year, the plea of the learned Authorized Representative for the assessee was that no addition was warranted. 15. The learned Departmental Representative for the Revenue placed reliance on the order of CIT(A). 16. We have heard the rival contentions and perused the record. The assessee by way of additional ground of appeal has raised an issue against the ad....