TaxTMI 
TaxTMI 
2018 (12) TMI 208
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.... "1. In the facts and circumstances of the case, the Ld. CIT (A) has erred in law in deleting the addition of Rs. 36,59,659/- made on account of disallowance of interest expenses debited in P&L account as the assessee made huge interest free advances for unrelated activities. 2. In the facts and circumstances of the case, the Ld. CIT (A) has erred in law in reducing the addition made by the AO on account of Business Promotion Expenses from Rs. 39,49,797/- to Rs. 9,87,449/- without appreciating the facts of the case mentioned in the assessment order." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : the assessee is engaged in the corporate tax and business advisory services having incom....
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....52%. AO also noticed that the assessee has received few prestigious awards from the Government during the year under assessment but most of the parties hosted by the assessee, gifts given by the assessee on receiving the above awards have been claimed as business promotion expenses, so part of the business promotion expenses claimed by the assessee are certainly personal in nature and thereby disallowed 20% of the aforesaid expenses amounting to Rs. 39,49,797/- towards personal in nature and thereby made addition thereof to the total income of the assessee. 4. The assessee carried the matter before the ld. CIT (A) by way of an appeal who has partly allowed the appeal. Feeling aggrieved, the Revenue has come up before the Tribunal by way ....
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....case cited as CIT vs. Sushma Kapoor (2009) 319 ITR 299, confirmed the order of CIT (A) deleting the addition made on account of proportionate disallowance of interest made by the AO. 8. When it is not in dispute that the AO has made addition on account of disallowance of interest by following the earlier years assessment orders which have now been over-turned by the coordinate Bench of the Tribunal by deleting the disallowance of interest expenditure, the facts of the case at hand are identical. Operative part of the decision rendered by the coordinate Bench of the Tribunal in assessee's own case (supra) is as under :- "18. Now the department is in appeal. The ld. DR strongly supported the order of the AO and reiterated the o....
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....and Chennai property from the ICICI bank. Those loans were utilized by the assessee for the purposes for which those were raised and even the AO had not pointed out any instance of diversion of those secured loans. Therefore, it cannot be said that the assessee diverted interest bearing funds towards interest free advances or loans particularly when the assessee had sufficient credit balance in his capital account to the tune of Rs. 21.76 crores. 21. On a similar issue the Hon'ble Jurisdictional High Court in the case of CIT Vs Ms. Sushma Kapoor (2009) 319 ITR 299 (supra) approved the factual findings given by the ld. CIT (A) which were confirmed by the ITAT by observing as under:- "The Commissioner o....
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....en the interest bearing funds and interest free advances made to his relatives and friends. Moreover, no cogent evidence is there on the file if secured loans have not been used by the assessee for business purposes. Assessee proved to have taken the secured loans for specific purpose and their utilization has not been disputed by the AO. AO has merely made the addition on the ground that the assessee has utilized sizable amount out of the secured loans to be given as interest free advances to his family members, related concerns and for acquiring property for their personal needs. 10. In view of what has been discussed above and following the decision rendered by the coordinate Bench of the Tribunal for AY 2008-09 and 2009-10, we are of....