2021 (3) TMI 116

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....his appeal of Assessee are as under: ITA No:- 5965/Del/2017, A.Y. 2013-14 "1. On the facts and in the circumstances of the case, the ld. CIT(A) erred in law deleting the disallowance u/s 36(1)(iii) on account of interest expense on borrowings amounting to Rs. 5,64,73,054/-. 2. The appellant craves to be allowed to add any fresh ground(s) of appeal and/ or delete or amend any of the ground(s) of appeal. ITA No:- 5966/Del/2017, A.Y. 2014-15 "1. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in law deleting the disallowance u/s 36(1)(iii) on account of interest expense on borrowings amounting to Rs. 8,63,54,989/-. 2. The appellant craves to be allowed to add any fresh ground(s)....

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....es in assessee's own case have been accepted by Revenue, and no appeal has been filed u/s 260A of IT Act, by Revenue. It was also brought to our notice at the time of hearing, by Ld. Counsel for assessee; that the impugned orders of Ld. CIT(A) deleting the disallowances of interest expenses; were based on earlier orders of Ld. CIT(A) on identical issues for A.Y. 2010-11 and A.Y. 2012-13 in which also disallowances of interest expenses were deleted by Ld. CIT(A); and further, that order of Ld. CIT(A) for A.Y. 2010-11 and A.Y. 2012-13 are already confirmed in aforesaid orders dated 21.12.2018 and 08.02.2019 of Co-ordinate Benches of ITAT, Delhi passed in assessee's own case. For ease of reference, the relevant portion of aforesaid order dated....

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....tial amounts of liquidation damages/pre-payment charges in case the assessee made pre-payment of loan repayments. Thus, it is also not in dispute that due to contractual restrictions and liquidation damages/pre-payment charges, as aforesaid; it was neither prudent for the assessee to divert any part of borrowed funds for nonbusiness purposes; nor was it prudent to make pre-payment of loan repayments even if the assessee had its own interest free funds. In these specific and peculiar facts and circumstances, there is no case for any disallowance of interest U/s 36(1)(iii) of I.T. Act. Moreover, Ld. DR failed to bring any material facts to our notice to distinguish the facts of the assessee with the facts of the judicial precedents on which t....