TaxTMI 
TaxTMI 
2022 (8) TMI 909
X X X X Extracts X X X X
X X X X Extracts X X X X
....inafter referred to as 'the Act') by ACIT, Circle-14(1),Kolkata dated 28.12.2016. 2. The grounds of appeal taken in this appeal are reproduced as under: "1. That the learned CIT(Appeals) erred in law as well as facts in confirming the addition/disallowance of Rs.4,05,22,204/- out of Finance Cost. 2. That the learned CIT (Appeals) erred in law as well as facts in holding that appellant could not prove the nexus between the Sundry Debtors and Long Term Advances as per accounts and thereby confirming disallowance of Rs.40522204/- out of Finance Cost. 3. That the learned CIT(Appeals) erred in law as well as facts in sustaining disallowance of Rs.1822024/- being depreciation on Motor Car inspite of Purchase Bills, B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore the AO except for the ledger statement for the motor cars purchase. Based on these submissions, ld. AO concluded the assessment by making the disallowance/addition to the total income. Aggrieved, the assessee went in appeal before the Ld. CIT(A). 4. Before Ld. CIT(A), assessee submitted the list of debtors totaling to Rs.45,02,46,720/- placed at page 27 to 29 of the paper book and stated that as on 01.04.2013 the opening balance of trade debtors was Rs.43,15,00,742/- and that of debit balance in sundry creditors of Rs.1,87,50,114/-, totaling to Rs.45,02,50,856/-. It was submitted that out of this, amount of Rs.45,02,46,720/- was transferred to long term advance and was duly reflected and reported in the audited balance sheet. No new ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f depreciation claimed on the motor cars in absence of the documentary evidences not furnished by the assessee. Aggrieved, assessee is in appeal before this Tribunal. 5. Ld. Counsel of the assessee placed on record a written submission and paper book containing 33 pages. In respect of the first issue relating to disallowance of Rs.4,05,22,204/- in respect of long term advance of Rs.45,02,46,720/-, Ld. Counsel by referring to Note No. 3 and 3.1 forming part of the audited balance sheet placed at page 21 of the paper book, submitted that during the year, working capital cash credit loan was converted into working capital term loan under loan restructuring by State Bank of India, Commercial Branch, Kolkata amounting to Rs.33.53 Cr. In addit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....addition to this, assessee is also having Factor loans from SBI Global Factors Ltd. and India Factoring & Finance Solutions Pvt. Ltd. 5.2. By referring to all these material placed on record, Ld. Counsel emphasized that no new loans and advances were given during the year by the assessee for which the long term borrowings have been utilized as alleged by the Ld. AO, who has thereby disallowed an interest in the sum of Rs.4,05,22,205/-. Ld. Counsel further submitted that it was only an exercise of restructuring the borrowings which compelled the assessee to report its trade receivables into long term loans and advances since the working capital cash credit loan was restructured into working capital term loan for which all the necessary di....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s incurred as well as its nexus with the benefits accruing to the business of the assessee. In the interest of justice and fair-play and to give another opportunity to the assessee, we find it proper to remit the matter back to the file of Ld. AO on this issue and direct the assessee to submit necessary documentary evidences required by the authorities below for substantiating its claim for the deductibility of the expenses. Ld. AO is also directed to provide reasonable opportunity of being heard to the assessee for making necessary submissions in this respect. Upon verification of the submissions made by the assessee and based on satisfaction therefrom, Ld. AO may assess the allowability of these expenses in accordance with the provisions ....