2019 (7) TMI 1698

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....mesh Kumar represented on behalf of the Revenue and Shri Raghav Rajeev Menon represented on behalf of the assessee. 3. At the outset, it was fairly agreed that by both sides that the only issue in the Revenue's appeal was against the action of ld.CIT(A) in allowing the expenditure claimed u/s.36(1)(iii) of the Act. It was fairly agreed by both the parties that the issued raised in the Revenue's appeal is squarely covered by the decisions of Co-ordinate Bench of this Tribunal in assessee's own case for preceding assessment years being 2012-13 & 2013-14 in ITA No.2895/Chny/2018 dated 20.06.2019 and ITA No.995/Chny/2017 dated 19.07.2018 wherein the Co-ordinate Bench of this Tribunal had followed the decision of the Jurisdictional High Court....

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....ctive charging of interest, but on account of cash basis system followed by the assessee. There is nothing in the statute which stopped the assessee from following the cash system of accounting. In assessee's own case for assessment year 2009-2010 on Revenue appeal (ITA No.1690/Mds/2013, dated 27.11.2013), this Tribunal had held as under:- ''6. The Commissioner of Income Tax (Appeals) held that the assessee is an investment company made investments in group concerns as part of its business of the assessee i.e. advancing loans to group concerns. The Commissioner of Income Tax (Appeals) also gave a finding that monies are borrowed from group concerns only and these monies are utilized by the investee concerns for their trade purposes....