TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 583
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....is, moreover, it is a capital expenditure. 2. On the facts and in the circumstances of the case and in law CIT(A) has erred in deleting the addition of 36(1)(iii) by holding that the amount was paid to Bhayana Builders on account of retention money on the direction of Hon'ble High Court when no opportunity was provided to the AO under the provisions of section 46A of the Act to confront these evidences submitted during appellate proceedings. 3. On the facts and in the circumstances of the case and in law, CIT(A) has erred in deleting the disallowance of Rs. 23,92,13,830/ u/s 36(1)(iii) when the assessee failed to brought on record any income from the loan advanced to M/s Logix Infrabuild (P) Ltd. even in the succeeding years during the appellate proceedings. 4. On the facts and in the circumstances of the case and in law, CIT(A) has erred in deleting the disallowance of Rs. 2.93 Crores on account of professional charges, when the assessee failed to on record any specific services rendered by the M/s Indiabulls Commercial Credit Ltd. for sanction of loan and no such kind of expenditure was incurred on past loans. 5. On the facts and in the circumstances of the case and i....
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....lls Housing Finance Ltd. Further, letter from Noida for granting approval for mortgage was also filed. 11. After considering the facts and submissions and considering the documentary evidences, the ld. CIT(A) was convinced that the impugned expenditure of Rs. 1,64,33,201/- has been made by the assessee wholly and exclusively for the purpose of business and allowed the same. 12. Before us, the ld. DR strongly supported the findings of the Assessing Officer and read the operative part. 13. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 14. We have carefully perused the findings of the ld. CIT(A). We find that the ld. CIT(A) has deleted the addition on proper appreciation of facts and the ld. DR could not bring any distinguishing facts. We, therefore, decline to interfere. Ground No. 1 is dismissed. 15. Ground Nos 2 and 3 are taken together which relate to the deletion of disallowance of the addition on account of interest paid to M/s Bhayana Builders Pvt Ltd and M/s Logix Infrabuild Pvt Ltd. 16. In so far as interest paid to M/s Bhayana Builders Pvt Ltd is concerned, the underlying facts are that the assessee paid inte....
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....406109.44 sq. mtrs situated in Plot No. TS-1B, Sector 22D, Yamuna Expressway Industrial Development Area, District Gautam Buddh Nagar, U.P. vide lease dated 26.11.2012 wherein the assessee has been shown as Special Purpose Company of M/s Logix Infrabuild Pvt Ltd. 23. These undisputed facts go on to show that the impugned advance was purely a business advance and by no stretch of imagination it can be considered that the assessee has transferred borrowed funds as interest free advances. 24. Considering the facts of the case in totality, we do not find any merit in the disallowance made by the Assessing Officer. The ld. CIT(A) has rightly deleted the addition which calls for no interference. Ground Nos. 2 and 3 are also dismissed. 25. Ground No. 4 relates to the deletion of disallowance of Rs. 2.93 crores on account of professional charges. 26. While scrutinizing the return of income, the Assessing Officer noticed that the assessee has claimed legal and professional charges of Rs. 5,34,73,865/-. The Assessing Officer further found that out of this amount, the assessee has paid Rs. 2.93 crores to M/s India Bulls Commercial Credit Ltd. The Assessing Officer wrongly assumed that the....
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....which resulted into termination of such swap cross currency agreement. It support of its contention, supporting evidences were filed. It was explained that prior to termination of such agreements, the assessee had suffered forex loss though the assessee had also earned forex gain on outstanding amount as on 20.04.2017 and from the gain, loss was set off. 35. After considering the facts and submissions, the ld. CIT(A) analyzed the facts as under: "From perusal of the documents submitted by the appellant, it is also found that the impugned termination fees of Rs. 18,32,56,782/- was paid by the appellant to IndusInd Bank. Also, the assessee earned foreign exchange gain of Rs. 7,98,03,242/- on outstanding amount as on 20/04/2017. Therefore, the net amount of Rs. 10,34,53,437/- charged in the P&L A/c of the appellant is the termination. fees paid to IndusInd Bank on termination of loan agreement net of the foreign exchange gain accrued by the appellant due to the loan in foreign currency. From perusal of the assessment order it is also found that the AO did not look into the veracity of the transaction and disallowed the amount of Rs. 10,34,53,437/-. Therefore, by looking into the do....