TaxTMI 
TaxTMI 
2020 (11) TMI 602
X X X X Extracts X X X X
X X X X Extracts X X X X
....the ld. AR fairly submitted that this issue is covered against the assessee by the Tribunal order passed in the case of the assessee for the immediately preceding assessment year. Inviting our attention towards page 67 of the paper book, which is the relevant part of the Tribunal order for the assessment year 2011-12, the ld. AR pointed out that this issue came to be decided against the assessee. In view of the foregoing facts, we uphold the action of the ld. CIT(A) in sustaining the disallowance at this level. This ground is not allowed. 4. The second ground is against the confirmation of addition of Rs. 71,18,316/- u/s.14A read with Rule 8D. 5. Briefly stated, the facts of this ground are that the assessee made suo moto disallowance u/s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessment year 2009-10. A copy of such order has been placed on record. The Tribunal on page 114 of the paper book has decided this issue in assessee's favour. Similar view has been reiterated by the Tribunal in its order for the assessment year 2010-11, whose copy has also been placed in the paper book. The ld. DR could not point out if the view of the Tribunal in such earlier years has been reversed or modified by the Hon'ble High Court in any manner. Respectfully following the precedent, we set-aside the impugned order on this score and order to delete the disallowance sustained at Rs. 71,18,316/-. 7. The only other issue which survives in this appeal is against the disallowance of interest at Rs. 3,79,97,067/-. The AO observed that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....97) 224 ITR 627 (SC). Similar view has been taken by the Hon'ble Dehi High Court in CIT vs. Tin Box Company (2003) 260 ITR 637 (Del), holding that when the capital and interest free unsecured loan with the assessee far exceeded the interest free loan advanced to the sister concern, disallowance of part of interest out of total interest paid by the assessee to the bank was not justified. More recently, the Hon'ble Supreme Court in CIT(LTU) VS. Reliance Industries Ltd. (2019) 410 ITR 466 (SC) has reiterated the same view. 10. When we examine the amount of interest free advances made to sisters concerns at Rs. 31.66 crore as against the availability of Share Capital and Reserves at average balance of Rs. 244.89 crore, it becomes evident t....