2019 (4) TMI 258

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.... ORDER PER RAJPAL YADAV, JUDICIAL MEMBER : Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-1, Ahmedabad dated 10.12.2015 for the assessment year 2012-13. 2. Solitary grievance of the assessee is that the ld.CIT(A) has erred in confirming addition of Rs. 39,90,874/- which has been added by the AO under section 36(1)(iii) of the Income Tax Act, 1961. 3. Brief f....

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....theld.CIT(A) had allowed it partly. 4. Before us, the ld.cousnel for the assessee submitted that the assessee has not taken any fresh loans representing work carried out in the capital field. It was also contended that the assessee has far more interest free funds than the one alleged to be used for capital WIP. It was also contended that interest was charged at the rate of 9.75% as against rat....

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....rt which suggest that the assessee has net cash flow Rs. 16,55,474/-. Thus, considering interest free funds available with the assessee in the shape of share capital, reserves and surplus, as well as net revenue from operations, we are of the view that alleged investment in WIP could be assumed as carried from these surplus funds. No notional interest ought to be calculated for capitalization. In ....