TaxTMI 
TaxTMI 
2022 (3) TMI 673
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....nst order dated 26.02.2016 u/s 143(3) of the Act passed by Income Tax Officer, Ward-1(3), Faridabad (hereinafter referred to as the Ld. AO). 2. In brief, the facts of the case are that the appellant is engaged in the business of manufacturing and trading of auto parts components. It had e-filed its return declaring income of Rs. 28,83,670/- on 29.09.2013 and the same was processed u/s 143(1) of the Income Tax Act. The appellant had also declared deemed income of Rs. 33,10,662/- u/s 115JB of the Income Tax Act. Later on the case of the appellant was selected for scrutiny through CASS, and subsequently assessment was completed u/s 143(3) of the Income Tax Act. The return income of Rs. 28,83,670/- was assessed u/s 143(3) of the Act at an inco....
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....36(1)(iii) of the income tax act,1961 which is bad in law and not called for (Ground No-2) 3. That on the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax Appeals (hereinafter referred to as 'CIT (A)'), erred in confirming the addition of Rs. 1,25,821/- made u/s 37(1) of the income tax act, 1961 of difference in the rate of interest which is bad in law and not called for. (Ground No-3) 4.That on the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax Appeals (hereinafter referred to as 'CIT (A)'), erred in confirming the addition of Rs. 1,42,500/- made u/s 36(1)(iii) of the income tax act 1961 which is bad in law and not called for. (Ground No-4) 5. That on the facts ....
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....up temporary cash flow mismatch. It was submitted that Bill Discounting expenses cannot be restricted on account of difference in the rate of interest between two entities. 7. In regard to Ground no. 5 it was submitted that the process charges of Rs. 78,652/- were paid to SIDBI for sanction of term loan of Rs. 70,00,000/- but this amount was for working capital and should have been treated as a revenue expenditure. Ld. Counsel placed on record sanction letter dated 01.01.2013 of the SIDBI wherein the loan is shown to be sanctioned to meet the margin money for working capital requirements of the company. 8. Ld. Sr. DR submitted that the Ld. Tax Authorities below have followed the settled legal principles on the basis of which assessment wa....
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....Tribunal has examined the issues based on the basis of relevant statutory provisions and judicial pronouncements while determining the controversies of disallowance of interest on the advances made by the assessee. There is no reason to differ. All the machinery for which the advance was given were part of the replacement machinery and said machineries for which the advance was given was not for extension of existing business. The Bench is thus inclined to decided this ground in favour of the assessee. GROUND NO. 3 11. In regard to this ground no 3, it can be observed that the assessee has paid bill discounting charges 15 and 16% to Sandhar Automotavies (Dhumspur) and 19% to Sandhar Enterprises. While as per the own case of assessee they ....