2021 (8) TMI 903

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....imbe ORDER Per S. S. Viswanethra Ravi , JM This appeal by the assessee against the order dated 05-07-2017 passed by the Commissioner of Income Tax (Appeals)-6, Pune ['CIT(A)'] for assessment year 2012-13. 2. The assessee raised seven grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A) is justified in confirming the addition ....

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....t was charged. According to the AO, the assessee was having borrowed funds about Rs. 5.15 Crores and on which incurred finance cost of Rs. 59,36,048/-. The AO asked the assessee to explain as to why interest paid on borrowed funds to the extent of interest free advances given to M/s. Sentosa Resort Pvt. Ltd. should not be disallowed at 12%. It was explained that the assessee is a major shareholder....

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....received the dividend income in the current, preceding or succeeding year from M/s. Sentosa Resort Pvt. Ltd., therefore, he disallowed an amount of Rs. 11,87,848/- working of which is reflected at Para No. 5.7 of the assessment order, added the said amount to the total income of the assessee. We note that the AO relied on the order of CIT(A) for A.Y. 2011-12 wherein on similar disallowance was con....

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....he year under consideration i.e. A.Y. 2012-13. The ld. AR placed on record the order for A.Y. 2011-12 from Page No. 4 to 18 in the paper book. The ld. DR vehemently argued the said decision of ITAT for A.Y. 2011-12 is not applicable for the year under consideration for the reason that the CIT(A) held clearly there is a change of facts compared to earlier years and the year under consideration. We ....