2013 (9) TMI 1297

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.... erroneously computing the disallowance by including interest pertaining to loans specifically taken for other purposes. 2.1. in disallowance of interest assumed to be extended on investment in property at Bharat Diamond Bourse and other similar advances given which were business assets. 2.2. in not appreciating that no funds had been specifically borrowed for the purposes of making this investment and that hence noting were disallowable on this account. 2.3. in not appreciating that the appellant had adequate non-interest bearing funds available with it and that hence no disallowance of interest was called for. 3.1. in disallowing interest paid to the extent that sums of money were advanced to a partnership firm where the appellant....

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....s, Ld Counsel mentioned that invoking the said provisions mechanically without rejecting the claim of the assessee ie Rs. 55,530/- is the expenditure incurred for earning of the exempt income, is unsustainable in law and relied on the jurisdictional High Court judgment in the case of Godrej & Boyce Mfg. Ltd (supra). In this regard, Ld Counsel prayed for setting aside the issue for re-examination and applying of the jurisdictional High Court judgment on this issue. 3.2. On the other hand, Ld DR has relied on the orders of the Revenue Authorities and mentioned that he has no objection if the issue remanded to the files to the files of the AO for fresh examination of the issue. 3.3. We have heard both the parties and perused the orders of th....

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.... 313 ITR 340 (Bom), the benefit should be given to the assessee considering the existence of excess interest-free funds. Further, Ld Counsel fairly mentioned that the facts about the issue of existence of excess funds were not examined by the lower authorities. Therefore, for this purpose, this issue may also be set aside for examining the same afresh in the light of the binding judgment of the Hon'ble High Court in the case of Reliance Utilities Power Ltd (supra). 4.1. On the other hand, Ld DR relied on the orders of the Revenue Authorities and he has no objection if the matter is remanded back to the files of the AO for fresh examination of the issue. 5. We have heard both the parties and perused the orders of the Revenue Authorities as....