TaxTMI 
TaxTMI 
2019 (4) TMI 1217
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.... Therefore, this appeal is being decided on the basis of the material available on record and after hearing the ld. DR. 3. Ground of appeal No.1 by the Revenue reads as under:- "1. Ld. CIT(A) erred in law and on facts of the case in deleting the disallowance of interest expenses of Rs. 22,21,526/-." 4. Facts of the case, in brief, are that the assessee is a company engaged in the business of real-estate development. It filed its return of income on 24th September, 2012 declaring total income of Rs. 1,47,74,910/-. The Assessing Officer, during the course of assessment proceedings observed that the assessee company has raised unsecured loan/other credits from various parties aggregating to Rs. 12,74,14,410/-. The above amoun....
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....ee did not furnish the copy of agreement or sale deed or any other evidence to justify that the payments have been made for the purpose of business to different companies who are also engaged in similar line of business, the Assessing Officer, invoking the provisions of section 36(1)(iii), made addition of Rs. 22,21,526/- being the proportionate interest on diversion of borrowed funds for non-business purpose. 6. In appeal, the ld.CIT(A), following the decision of the Hon'ble Supreme Court in the case of M/s Taparia Tools Pvt. Ltd., deleted the disallowance made by the Assessing Officer on the ground that the advances have been given by the company purely for the purpose of business needs and the advances have not been given to any s....
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....(A), following the decision of M/s Taparia Tools Pvt. Ltd., deleted the disallowance on the ground that the advances have been given by the company purely for business needs and have not been given to any sister or associated concern. The same have been given to companies engaged in the business of real-estate and was no way connected with the company or its promoters. While we accept the proposition as laid down by the ld.CIT(A) in principle, however, the fact remains that no evidence was filed either before the Assessing Officer or before the CIT(A) to suggest that such advances were given to companies/parties engaged in the business of real-estate and, in fact, the assessee has either purchased land from the said parties or has entered i....
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....as claimed an amount of Rs. 52,08,210/- towards foreign travel expenses. From the various details furnished by the assessee, he noted that the above amount includes a sum of Rs. 30,08,000/- towards foreign travel made by the directors of the assessee company. The Assessing Officer, therefore, asked the assessee to furnish the details of places visited, period of visit, amount incurred on each visit along with copy of invoices/bills and justification of expenses with regard to the business requirement. The assessee in its submission stated that the foreign travel expenses have been incurred by the directors for visiting foreign countries in order to study property trends and look for overseas financial tieups for the projects of the company.....
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....ted all the three additions by observing as under:- "4.1 Having gone through the submissions, the order of assessment passed by the Assessing Officer and the facts available on the record, it emerges that the Assessing Officer has disallowed an amount of Rs. 30,08,000 out of the travelling expenses on account of foreign travel and the entire expenditure of Rs. 32,10,556 out of business promotion expenses. It is pertinent to note here that during the assessment proceedings the attention of the Assessing Officer was drawn to the fact that the assessee during the course of survey u/s 133 of the Act on 07.10.2011 has voluntarily surrendered an amount of Rs. 461.15 lacs towards disallowances u/s 40A(3)/ 40(a)(ia) and u/s 68 and 69C of t....
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....order of the CIT(A), the Revenue is in appeal before the Tribunal. 16. We have considered the arguments advanced by the ld. DR and perused the material available on record. It is an admitted fact that during the course of assessment proceedings, the assessee did not furnish the details as called for by the Assessing Officer for which he disallowed foreign travelling expenses of Rs. 30,08,000/- and business promotion expenses of Rs. 32,10,556/-. Although the ld.CIT(A) deleted the addition/disallowance on the ground that the assessee has surrendered an amount of Rs. 461.15 lakh towards disallowance u/s 40A(3)/40(a)(ia) and u/s 68 and 69C of the Act and other unexplainable documents/entries for which no addition is called for, however, it i....