2022 (2) TMI 1511

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.... assessee at the material time has been engaged in the business of sale and purchase of shares and also earning income from salary, rent and profit from partnership firm. During the course of assessment proceedings, the Assessing Officer (AO) observed that the assessee had shown huge cash balances, that is, Tijori Account Rs.3.96 crore and Cash of Rs.10,55,565/-. On being called upon to explain the necessity of such huge cash in hand, the assessee submitted that he was in the business of development of land and plot and the cash was required to be kept in hand for meeting the business requirements. The AO noted that the assessee had availed interest bearing funds. Applying 12% interest rate on such cash in hand maintained by the assessee at....

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....to Bhaichand Hirachand Raisoni Multi State Co-operative Credit Society Ltd. (in short 'BHR') without deduction of tax at source. On being called upon to explain as to why payment of interest was made without deduction of tax at source, the assessee submitted that the TDS provisions were not applicable on such interest paid to BHP. Not convinced, the AO made the disallowance, which came to be deleted in the first appeal. 7. We have heard the ld. DR and gone through the relevant material on record. It is seen that the assessee paid interest to BHR. The business of BHR is of banking. Section 194A(3)(iii)(a) provides that no deduction of tax at source is required in respect of interest paid to "any cooperative society engaged in carrying on th....

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.... `the Act') at Rs.51,363/-. Not satisfied, the AO invoked the provisions of Rule 8D and computed the disallowance at Rs.70,25,949/-. The ld. CIT(A) directed to restrict the disallowance to the amount of the income claimed as exempt or the disallowance offered by the assessee at Rs.51,363/-, whichever is higher. 9. The Hon'ble Delhi High Court in Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del) has held that if there is no exempt income, there can be no question of making any disallowance u/s 14A of the Act. Similar view has been taken by the Hon'ble Delhi High Court in CIT vs. Holcim India P. Ltd. (2014) 90CCH 081-Del-HC. More recently, the Hon'ble jurisdictional High Court in Pr. CIT VS. Kohinoor Projects Pvt. Ltd. (2020) 425 ITR 7....

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....borrowers for obtaining loans from the society, which were thereafter given as loan to the assessee. He, therefore, made an addition of Rs.9,93,06,354/- representing fresh loans received from six persons during the year as under : Sl.No. Name Amount 1 Shri Prakash Sitaram Baviskar Rs.2,06,11,590/- 2 Shri Subhash Fulchand Chaudhary Rs.2,42,49,000/- 3 Shri Vishal Shalik Koli Rs.2,41,06,500/- 4 Shri Suresh Namdev Jiri Rs.99,00,000/- 5 Shri Sukdeo Shankar Bormale Rs.77,23,844/- 6 Shri Ishwar Shriram Koli  Rs.1,27,15,420/-    Total Rs.9,93,06,354/- 12. The ld. CIT(A) deleted the addition. 13. Having heard the ld. DR and gone through the relevant material on record, it is found that the AO made the additio....