2019 (1) TMI 94

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....peal by the assessee is preferred against the order of the CIT(A), Ghaziabad dated 03.11.2017 pertaining to A. Y. 2014-15. 2. The substantive grievance of the assessee read :- 1. Because, the learned Commissioner of Income Tax (Appeals) erred in sustaining the disallowance of interest of Rs. 4,46,346/- against the facts on the record in as much as amounts considered as intt. Free loans were not....

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.... shown as advance in supplier. The Assessing Officer was of the firm belief that proportionate interest should be disallowed out of the interest expenses claimed by the assessee accordingly the Assessing Officer computed the allowable expenses as under :- S. No. Description Amount   1 Interest expenses on unsecured loans @13% 11,78,934 A 2 Total advances given (interest free) 34,34....

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...., no disallowance is called for. 7. The counsel further stated that ad-hoc disallowance is unwarranted as the expenses are fully supported by bills and vouchers. Per contra the DR strongly supported the findings of the Assessing Officer. 8. I have carefully considered the orders of the authorities below. I find from the balance sheet of 31.03.2013 advance to suppliers was of Rs. 29 lacs. The sam....