TaxTMI 
TaxTMI 
2024 (10) TMI 737
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.... assessment year 2016-17. 2. The CIT(A) by the impugned order has deleted the additions made by the Assessing Officer on the following counts :- (i) Rs. 7,25,09,930/- towards excess of interest expenditure on unsecured/ bank loans; (ii) Rs. 1,33,17,919/- towards brokerage/commission; and, (iii) Rs. 56,401/- towards bank charges. 3. The brief facts necessary for the disposal of the appeal may be stated thus- That the respondent-assessee is the promoter of Shreepati Group of companies, AOPs & LLPs, which is engaged in the business as a developer and builder and allied activities. The income of the respondent-assessee consists of 'income from salary', 'income from house property', 'income from capital gains', 'profit and gains of busi....
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....n of this Tribunal in respect of assessee's own case for assessment year 2015-16 (ITA No. 5064/Mum/2018 decided on 13.07.2020). The CIT(A) after extensively reproducing the findings recorded by this Tribunal in the aforesaid appeal has thereafter concluded in para 6.4 that the facts as obtaining in the present case are identical to the facts in respect of assessment year 2015-16. In that view of the matter, the appeal came to be allowed. 9. We have heard the learned CIT-DR for the appellant and the learned counsel for the respondent-assessee. With their assistance we have gone through the record. 10. It is submitted by the learned CIT-DR that the Assessing Officer after perusal of the record and by a well-reasoned order had made the addit....
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....f the Tribunal for the earlier period in the assessee's own case. It is submitted that in a case where the assessee has sufficient interest free funds available, then the presumption is that the interest free advances or advances at lower rate of interest are made out of such interest free funds and not out of interest laden funds/overdrafts. Reliance in this regard is placed on the decision of Hon'ble Bombay High Court in the case of Reliance Utilities and Power Ltd., 313 ITR 340 (Bom.). It is submitted that from the records produced before the Assessing Officer it is sufficiently established that the assessee had sufficient interest free funds available so as to meet the amount which has been advanced to related and unrelated parties. The....
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.... Officer on the decisions of Hon'ble Bombay High Court in Phaltan Sugar Works Ltd. vs CWT, 208 ITR 989 (Bom.) and Phaltan Sugar Works Ltd. vs CIT, 215 ITR 582 (Bom) are misplaced as the said decisions have been overruled by the Hon'ble Supreme Court in S.A. Builders Ltd. vs Commissioner of Income Tax (Appeals), 288 ITR 1 (SC). He, therefore, submitted that the impugned order does not call for any interference. 12. We have carefully considered the rival circumstances and the submissions made. It is now well-settled that where an assessee has a pool of funds comprising of both interest free and interest laden funds, the advance made to subsidiaries, family, friends or relatives are presumed to be made out of such interest free funds, provide....