2023 (7) TMI 567

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....with Ms Hemlata Rawat, Standing Counsel For the Respondent Through: None RAJIV SHAKDHER, J. (ORAL): CM Appl. 34152/2023 [Application filed by the appellant revenue seeking condonation of delay of 23 days in filing the appeal] CM Appl. 34153/2023 [Application filed by the appellant revenue seeking condonation of delay of 90 days in re-filing the appeal] 1. These applications have bee....

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....that the disallowance was mandated in view of the fact that the respondent/assessee had not been able to demonstrate "commercial expediency". 7.1 Accordingly, the AO disallowed interest expenses amounting to Rs. 5,16,16,215/- in proportion to the non-interest bearing advances extended to each of the partners. 8. The respondent/assessee, being aggrieved by the order, preferred an appeal with ....

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....11.2. During the period spanning between AY 2005-06 and AY 2011-12, interest paid by the respondent/assessee to the bank was allowed as deductible expenditure. 11.3 It is only in AYs 2012-13, 2013-14 and 2014-15, that the concerned officer veered away from this and disallowed the interest expenditure. As noticed above, in the instant AY as well, i.e., AY 2015-16, the AO has chosen to disallow t....

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....penditure under the provisions of Section 36(1)(iii) of the Act. 13.1 The odd years are AY 2012-13, 2013-14, 2014-15 and 2015-16. The CIT(A), however, made a course-correction by reversing the view of the AO even for those years. The Tribunal has sustained the view taken by CIT(A) in AY 2015-16, which is the AY under consideration in the instant appeal lodged before us. 14. Given this backdr....