2020 (11) TMI 810

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....MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2010-2011 contest the order of Ld. Commissioner of Income Tax (Appeals)-10, Mumbai, Appeal No. CIT(A)-10/DC/5(2)(1)/138/2014-15 dated 18/01/2019 on following grounds: - 1. The learned CIT(A) erred on facts and in law in sustaining the disallowance of interest of Rs. 7150119/- u/s 36(1)(iii....

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....the investments under consideration. The Ld. DR, on the other hand, controverted the submissions by stating that facts are different in this year. It has been submitted that the assessee did not file any fund flow statements in support of the submissions that own funds were used to make the investments in certain premises, against which the disallowance has been computed by lower authorities. ....

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.... premises at Bharat Diamond Bourse and at Surat. None of the premises was put to use during the year which led Ld. AO to disallow proportionate disallowance u/s 36(1)(iii) out of interest expenditure of Rs. 34.09 Crores claimed by the assessee. The assessee submitted that no specific borrowings were taken to make the said payment and the assessee had sufficient own funds in the shape of share capi....

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....w that the assessee has own funds in the shape of share capital & reserves aggregating to Rs. 225.28 Crores at year end as against opening funds of Rs. 153.15 Crores. Besides the above funds, the assessee has interest free unsecured loans of Rs. 58.72 Crores at its disposal at year end. As against this, the capital advances at year end stood at Rs. 20.23 Crores as against opening balance of Rs. 19....