TaxTMI 
TaxTMI 
2019 (11) TMI 581
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....er of Income Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. 2(i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the disallowance of Rs. 19,43,548/- on account of interest on borrowings paid by the assessee. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in laws in ignoring the fact that the alleged loans and advances extended to the various parties on account of business expediency, hence no disallowance of interest is called for. (iii) That the above disallowance was made rejecting the contention of the assessee that the borrowed funds were used for business activities only and ....
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....is recomputed as under:- S. No. Particulars (Amount in 7) Income as per computation tiled by the assessee 72,37,36,341/- i. Disallowance of expenses which have not been paid in the relevant financial year 713,84,498/- II. Non grant of TDS Claims 15,88,890/-) NIL III. Disallowance of Interest 729,28,540/- IV. Disallowance on account of unverifiable bills/vouchers Expenses 71,57,088/- Total disallowance 744,70,126/- Total Income 72,82,06,467/ Rounded off 72,82,06,467/- Thus, the income of the assessee is assessed at Rs. 2,82,06,467/- by the Assessing Officer. 5. Being aggrieved by the order of the Assessing Officer, the assessee ....
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....sessee had to apply for the flat as a measure of commercial expediency in order to recover the fees amount. It was mutually agreed between the assessee and the respective parties that the payment for fees will be made subject to the condition that the assessee applies for allotment of flat. Thus, assessee had to apply for allotment of flat as a measure of commercial expediency. The ledger account of such parties where in the receipt of money is reflecting was also placed on record. Further, a summary sheet reflecting the date of receipt of amount and the date of payment for flat is also submitted by the assessee. The Ld. AR submitted that perusal of the same reveals that the assessee had applied the fees amount towards the purchase of fl....
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....he businessman and that the Revenue cannot justifiably claim to put itself in the armchair of the businessman and dictate as to what is "commercial expediency". The Ld. AR relied upon the following decisions: 1. S. A. Builders Ltd. vs. CIT (2007) 288 ITR 1 (SC) 2. Hero Cycles (P.) Ltd. vs. CIT (2015) 379 ITR 347 (SC) 3. PCIT vs. Basti Sugar Mills Co. Ltd. (Del. HC) (ITA No. 205 order dated 28.09.2018) 4. DCIT vs. M/s Jetair Pvt. Ltd. (Tri. Del.) (ITA Nos. 2712, 2713 and 6884/Del/2015 order dated 19.09.2018) 5. Chemical Sales and Services 3N vs. ITO (Tri. Del.) (ITA No. 4146/Del/2015 order dated 26.09.2018) 6. PCIT vs. DLF Holding Ltd. (Del. HC) (ITA No. 1012/2018 order dated 28.09.2018) ....
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....rrent account held with the bank, are duly reflected in the ledger accounts. The details of party wise interest paid also reveals that no interest was paid to such bank. The said bank account is reflecting under the head current assets in the balance sheet. It is the case of the assessee that the assessee had to apply for the flat as a measure of commercial expediency in order to recover the fees amount. It was mutually agreed between the assessee and the respective parties that the payment for fees will be made subject to the condition that the assessee applies for allotment of flat. Thus, assessee had to apply for allotment of flat as a measure of commercial expediency. The ledger account of such parties where in the receipt of money is r....