2018 (8) TMI 921

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.... "[A] Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 55,73,818/- made on account of opening stock? [B] Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 9,88,740/- made on account of disallowance in respect of provisions of interest liability of central excise refund? [C] Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs. 63,44,823/- made on account of disallowance of interest of Rs. 63,44,823/- being on funds utilized for giving interest free loans to sister concerns?" [D] Whether the Appellate Tribunal has substantially erred in law in deleting the disallowance of expenditure on i....

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.... High Court's order and as the assessee followed mercantile system of accounting, the liability accrued during the year and its payment at future date cannot result in disallowance. Considering the above, the learned Tribunal has rightly deleted the aforesaid addition of Rs. 9,88,740/- made on account of disallowance in respect of provisions of interest liability on central excise refund. We are in complete agreement with the view taken by the learned Tribunal. No substantial question of law arises. 5. Now so far as proposed Question No.2[C] is concerned, the same is with respect to deleting addition of Rs. 63,44,823/- made on account of disallowance of interest on funds utilized for giving interest free loans to sister concerns. It is r....