2020 (11) TMI 857

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....d in law and on facts of the case: (a) By arbitrarily and wrongly confirmed the rejection of books of accounts and assessment framed u/s. 143(3) r.w.s 144 of the Income Tax Act, 1961. (b) By arbitrarily and wrongly confirmed the disallowance of Rs. 2483432/- towards Bank charges, Processing fees and Bank interest u/s. 36(i)(iii) of the Income Tax Act, 1961. 2. The above said order is bad in law & contrary to the facts of case. 3. It is therefore prayed that the appeal may please be accepted and such relief may kindly be allowed which may be deemed fit and proper under the facts and circumstances of the case. 4. The assessee craves permission to file/raise/amend any ground of appeal before or at t....

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....id advance was received back by April-May, 2015, Copy of account of the said party for the year ending 31.03.2014 to 31.03.2016 is enclosed for ready reference. Since the advance was given for business purpose under commercial expediency only, no disallowance of expenses is called for w.r.t the impugned advance of Rs. 30,00,000/-. II. M/s. Ganga Acrowools Ltd:- The assessee company had sold goods to the said company vide bill No. 2182 dtd. 30.11.2013 for Rs. 10,60,987/-. The bill amount was received in the next year. Copy of account of the said company for this year and next year along with copy of sale bill are enclosed for your honour's perusal. However, due to mistake, instead of classifying the said amount as a sun....

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....e parties. We find that the Ld. CIT(A) has not given any adverse findings in respect of the submissions of the assessee that the advances made to the aforesaid three parties were out of the business expediency. Even it was explained that the amount outstanding to M/s. Ganga Acrowools Ltd. was in respect of the goods sold to that party. Further, no justification has been given as to how disallowance of bank charges and processing fee was warranted in this case. There is no denial to the contention of the assessee that the assessee had own funds in the shape of own capital and unsecured loans to the tune of Rs. 124.73 lacs and Rs. 53.35 lacs respectively totaling Rs. 178.08 lacs, which amount was sufficient to meet the advances made by the as....