TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 385
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....s of appeal:- 1. On facts and circumstances of the case and iii law, Ld. Pr. CIT erred in passing the revision order u/s. 263 though the reassessment order passed u/s. 143(3) is not erroneous anti in so far is not prejudicial to the interests of the revenue 2.0 The Ld. Pr. CIT, before setting asides the assessment ordev.de novo on invoking Sec 263(I), ought to have considered the understated facts, being; a) The Ld. AO had passed the assessment order on conducting proper inquiries on due application of mind and on considering all material facts filed/available on assessment record; b) The Ld. AO had already made the disallowance of huge interest expense of Rs. 7,92,27,335/-, out of total finance cost incurred of Rs. 11,49,54,281/-; ....
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....etic Silk Mills Limited 7,02,93,469 6 Raj Resorts Pvt. Ltd. 1,00,00,000 7 Mansoon Trading Company Limited 29,89,527 8 Meenakshi Steel Industries Limited 1,29,79,596 9 Nilkanth Engineering Limited 2,01,41,227 10 Sushree Trading Limited 4,68,47,268 Total 178,42,70,069/- It was also observed that the long term borrowing was of Rs. 117,35,69,248/- on which the assessee has claimed finance costs of Rs. 11,49,54,281/- in the profit and loss account. Further, the long term and short term loans and advances was given of Rs. 79,84,42,190/- and Rs. 1,29,70,062/- respectively. The assessee was borrowing huge money and paying huge interest and finance cost on these borrowings and at the same time advanced t....
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....4,281/- on borrowed fund of Rs. 117,35,69,248/- at an average interest rate of 9.80%. Assessee company was required to submit the details with reference to loans taken, utilization of loans and rate of interest. In response to the same, the assessee company submitted the details and stated that the advances had been given to the various projects and also enclosed the working of interest attributable towards the advance and investment account. The list of the persons to whom advances were given as under:- Sr. No. Name, address and particulars of the developers Amount given (in Rs.) Interest @ 8.75% (in Rs.) 1 Base Industries Ltd. (PAN: AAACB8821F) 50,00,000 4,90,000 2 Better Equity Se....
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....d. PAN AACCP0964F 30,64,00,605 3,00,27,259 25 Bombay Construction & Engineering Pvt. Ltd. PAN AAACB9795N 2,65,00,000 25,97,000 26 Daksh Developers PAN AAHFD0864C 5,18,00,000 50,76,400 27 Della Enclave Pvt. Ltd. PAN AACCM4457C 2,66,47,019 26,11,408 28 Marudhara Buildwell Pvt. Ltd. PAN AAGCM3644M 5,85,00,000 57,33,000 29 Opening Interest Capitalized 3,24,59,827 31,81,063 30 Burgar King Restaurant 1,00,00,000 9,80,000 Total 80,84,42,190 7,92,27,335 5.1 A perusal of the detailed working submitted by the assessee shows that the interest on borrowed funds attributable to the advances amounts to Rs. 7,92,27,335/and the same was debited in the P & La/c. Section 36 of the Act provides the deduction in res....
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....ed the reply by virtue of letter dated 16.06.2017 and letter dated 30.05.2017 which lies at page no. 13 to 15 of the paper book. The submission in the letter dated 16.06.2017 is hereby reproduced as under:- To, Dy. Commissioner of Income Tax, Circle-14(2)(2), Mumbai. Dear Sir, Re: Submission in the assessment matter of M/s. Niagara Finance Consultants Pvt. Ltd. Asst. Year: 2015-16 In continuation of my earlier submission dated 30.05.2017 and under instruction from my above said client, I hereby submit the following details: (i) Party-wise details of loans/ICD along with their address PAN Number. Also, the confirmation of account of fresh loans/ICD received during the year is enclosed; (ii) Details of other liabilities; (....
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....ire the properties at discounted price. Thereafter, on substantial completion of the construction activities, the assessee would sell the properties and earn profit thereon. During impugned year, the assessee filed its return of income vide Ack no. 839031591300915 on 30/09/2015 on disclosing the total Loss of Rs(-)11,14,50,265/-. The other details submitted are stated as under:- 1 I.T. acknowledgement receipt; 2. Computation of income (original); 3. Revised Computation of income. The original return of income filed on 30/09/2015 disclosing the total loss of Rs. 11,14,50,265/- is revised since the entire interest paid of Rs. 11,49,54,281/- was claimed as deductible u/s. 36(1)(iii) of the Act. However, since, the assessee had utilized t....