2024 (10) TMI 737

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me Tax ('Assessing Officer' for short), for 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 h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er passed by CIT(A) will show that the CIT(A) has relied upon an earlier decision 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng the facts as obtaining in the present case has proceeded to abide by the decision of 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 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee had total interest free funds of Rs. 153,88,65,770/- and the interest free loans and advances given are to the extent of Rs. 101,90,48,922/-. It is submitted that the reliance placed by the Assessing 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 asses....