2016 (12) TMI 1833

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....; : Shri K. Madhusudan, Sr.DR ORDER PER PRADIP KUMAR KEDIA, AM: This appeal by the Assessee is directed against the order of the Commissioner of Income Tax(Appeals)-XIV, Ahmedabad dated 25/04/2013 for Assessment Year (AY) 2009-10. 2. The Assessee has raised the following grounds of appeal:- (1) The learned Commissioner of Income Tax (Appeals) XIV Ahmedabad has erred both in la....

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....wing parties:- Sr.No.  Particulars Amount (Rs.) (i) Amiben B.Shah  18,50,000 (ii) Smitaben D.Turakhia 2,16,038 (iii) Vasumatiben P. Turakhia  40,076 (iv) Arpan D.Turakhia 4,546 4. The AO found that the assessee had advanced certain funds noted above without any interest while it incurred liability to pay interest and therefore the adva....

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..... 21.10 lakhs, the advance to one party, namely, Amiben B.Shah is of Rs. 18,50,000/- who happens to be wife of one of our employees Mr.Bhargav Shah serving the company for more than 16 years. The Ld.AR contended that interest-free advances to staff is normal feature of a corporate employer. Such action on the part of the assessee has improved the confidence and mutual trust between the employer an....

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....or of the assessee-company and was thus the advance extended was in the personal benefit of the Director without any traces of commercial expediency in such advance. He accordingly submitted that the reasons cited by the CIT(A) in sustaining the disallowance does not call for any interference. 8. We have carefully heard the rival submissions and perused the orders of authorities below. At the o....