2018 (4) TMI 518

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed in deleting the disallowance of interest of Rs. 1,35,00,000/- made by the AO u/s. 36(1)(iii). 2. The appellant craves to leave, to add, alter or amend any ground of appeal raised above at the time of the hearing. 3. The brief facts of the case are that the assessee filed its ereturn of income at Rs. 17,70,36,864/- on 05.10.2010. The return of the assessee was processed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred as the Act). The case of the assessee was selected for scrutiny and later notice u/s. 143(2) of the Act dated 27.8.2011 was issued and another notice u/s. 142(1) alongwith questionnaire dated 16.11.2012, 7.2.2013 & 14.2.2013 were issued. In response thereto, the A.R. of the assessee attended the proc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duction under section 36(1)(iii) of the Act. Accordingly, an amount of Rs. 1.35 crores was disallowed u/s. 36(1)iii) of the Act and assessed the income of the assessee at Loss of Rs. 16,35,36,860/- u/s. 143(3) of the Act vide order dated 28.3.2013. Against the aforesaid assessment order, assessee appealed before the Ld. CIT(A)-3, New Delhi, who vide his impugned order dated 06.01.2015 has allowed the appeal of the assessee by deleting the addition in dispute. Aggrieved with the order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal. 4. Ld. DR relied upon the Order of the AO and reiterated the contentions raised in the grounds of appeal. He stated that Ld. CIT(A) has erred in deleting the disallowance of interest of Rs. 1,3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and joint venture companies during the year to have controlling stakes in such companies. During the year, the assessee has invested Rs. 10,26,00,000/- in the shares of subsidiary and joint venture companies as against the share capital of the assesssee of Rs. 8 crores. The AO treated investment of Rs. 2.41 crores out of borrowed funds and disallowed interest on such borrowed funds and disallowed interest on such borrowed funds for six months of Rs. 15,66,500/-. On going through memorandum of association and article of association, it is seen that investing in the shares of subsidiary / joint venture companies is one of the main objet of the assessee to have controlling stakes in trading of branded garments, apparels and other acce....