2018 (12) TMI 1565

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....IT (A) was not justified in sustaining the addition of Rs. 43,48,483/- on account of notional interest income on the loan given to M/s Sietz Technologies India Pvt. Ltd. 1.1 That on the facts and in the circumstances of the case the Learned CIT (A) has erred in ignoring the restructuring agreement dated 30th April 2008 . 1.2 That the Learned CIT (A) has failed to appreciate that the Loan given to M/s Sietz Technologies India Pvt. Ltd. was out of reserves and interest free funds of the appellant company. 1.3 That on the facts and in the circumstances of the case the Learned CIT (A) has erred in sustaining the levy of interest @ 15% in absence of material on record. 1.4 Without prejudice to the above ground....

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....r of Income Tax (Appeals) challenging all the additions/disallowances but the assessee's appeal was dismissed by the Ld. Commissioner of Income Tax (Appeals) and now the assessee is before the ITAT challenging the upholding of addition of Rs. 43,48,483/- on account of notional interest income. The assessee is also in appeal against the sustenance of disallowance of Rs. 4 lakh given as advance which was subsequently written off as bad debts and also in appeal against the action of the Ld. Commissioner of Income Tax (Appeals) in sustaining the disallowance of Rs. 23,331/-. 3.0 At the outset, the Ld. AR submitted that the grounds relating to sustenance of disallowance of bad debts and sustenance of disallowance of business promotion expense....

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.... had not been charged in view of the loan restructuring agreement. It was submitted that the addition on notional basis was liable to be deleted. 4.0 In response, the Ld. Sr. DR placed reliance on the concurrent findings of the lower authorities in this regard and also submitted that the transaction did not appear to be genuine as both the lender as well as the borrower company were sister concerns and under the same management. It was submitted that addition had been rightly made by the Assessing Officer in this regard. 5.0 We have heard the rival submissions and perused the material available on record. The facts of the case are not in dispute and the only issue for consideration before us is whether in view of the restructuring agr....