TaxTMI 
TaxTMI 
2021 (8) TMI 1206
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.... as it is against the Appellant, is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the case. 2. The learned Commissioner of Income Tax (Appeals) erred in upholding the action of learned Deputy Commissioner of Income Tax - 2(3) in disallowing the claim of interest of Rs. 83,50,669 paid to non banking finance companies (NBFC's) by the Appellant under the provisions of Section 40(a)(ia) of the Act under the facts and circumstances of the case. 3. The learned Commissioner of Income Tax (Appeals) ought to have appreciated that the interest paid by the Appellant has been offered to income tax by such NBFC's and doubly taxing the same transactions in the hands of the Appella....
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....te that the advance towards purchase of land by the Appellant are out of internally accrued capital and not out of borrowed funds under the facts and circumstances of the case. 9. Without prejudice the learned lower authorities have erred in law in levying interest under section 2348 and 2340 of the Act on the facts and circumstances of the case. Further without prejudice the calculation of interest, rate and period are not discernible from the order of assessment on the facts and circumstance of the case. 10. The Appellant craves to add, alter, delete or substitute any of the grounds urged above. 11. In view of the above and other grounds as may be urged at the time of hearing of the appeal, the Appellant prays t....
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.... the material on record. In this case the assessee has not deducted the tax at source on the payment made to non-banking finance companies. However, the assessee has pleaded that in similar circumstances in assessee's own case for assessment year 2013-2014 in ITA No. 318/Bang/2018 (order dated 20.12.2019) held as under:- "6. Admittedly, assessee has not deducted TDS under section 194A of the act against interest paid to non banking financial companies. It is also an admitted fact that the companies to whom assessee has made payments are repeated companies like M/s. L&T Finance Ltd., M/s. Bajaj Finance Ltd., M/s. Reliance Capital Ltd., M/s. India Bulls Ltd., M/s. Daimler Finance Ltd., M/s. Kotak Mahindra Bank Ltd., and M/s. Tata....
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.... this issue to the files of the A.O. to examine the issue afresh and also direct the assessee to prove the availability of own funds for making investment in such exempted income yielding assets. 14. Ground No. 7 and 8 is with regard to the disallowance of interest on advances made to Naveen Hotels towards purchase of land. In the assessment year under consideration, the assessee has diverted funds to the tune of Rs. 6,64,97,058 for making advances to Naveen Hotels. On the other hand, the assessee has incurred interest on borrowed funds, which was claimed as deduction. The A.O. disallowed the claim of the assessee towards interest of Rs. 66,49,705. The contention of the learned AR is that the assessee is having own funds to make investme....