2013 (11) TMI 1792

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....s. 14,13,600/- in holding that the assessee was not a "contractor" and the assessee was not governed by AS-7 of the guidelines of institute of chartered Accountants of India, ignoring the underlying fact that the assessee had performed and undertaken all actions as a contactor and camouflaged the performance as "developer". 2. The CIT(A) erred in law and on facts in deleting interest disallowance of Rs. 13,62,808/- overlooking the fact that the company had diverted the funds for the directors of the company, which caused delayed payment to and charging of interest by the Municipal Corporation." 3. The first ground relates to rejection of books of account and applying of rate of 8 % on the booking advances. 4. Brief facts of t....

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....in the present circumstances and facts of the case i.e. AS-7 cannot be made applicable. Accounting standard AS-9 which has been reproduced by the Ld. CIT(A) and has been discussed at pages 4-8 of his order is applicable in the present circumstances and facts of the case. Moreover, it has not been controverted by the Ld. DR appearing for the Revenue that the assessee had awarded the contractors to various other contractors. Also it has not been controverted that there is no construction activity carried out by the assessee during the year and there was a dispute of the parties who had filed civil suit in Mumbai civil court. The assessee had received the advances which are duly reflected in the balance-sheet of the assessee. There is no certa....

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....ount Purpose 1. Paresh Bhuta (HUF) 15,00,000 Deposit Guest House 2. Harsha Bhuta 25,00,000 Deposit Mumbai Office 3. Jayshreeben Bhuta   3,70,000 Mrs. J, P. Bhuta 4 Abhi Builders 5,00,000 For purchase of property 5 Dilip Pandit 1,65,000 Advance 6 Dwarksh Corporation 2,25,125 For purchase of property. 7 Uday Desai 1,35,725 For share trading at Rajkot. 8 Anik Security & finance Ltd. 6,53,572 Advance 9 A.M Investment 23,88,105 For purchase of shares. 10 Arvindbhai 50,000 Advance  11 H.C. Mehta 3,00,000 For p....

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....of business.. In this regard reliance is also placed on the following decisions:- (1) Phalthan Sugar Works Ltd. CWT(208 ITR 989)(Bom.) (2) CIT Vs. H.R. Sugar factory Ltd (187 ITR 363) (All.) (3) Indian Metal & Ferro Alloys Co. Vs CIT (193 ITR 344) (Ori) The Honourable Judicial Authorities in the above cases have held that even in case interest free loans are given to its associate concerns, it shall be presumed that the assessee would have not raised interest bearing loans considering that the amount of interest free loans advanced to associate concerns would have been available with the assessee for its business purpose. Addition Rs.l3.62.808/-" 7. Ld. CIT(A) has deleted this disallowance by observing....