TaxTMI 
TaxTMI 
TaxTMI 
2014 (10) TMI 1087
X X X X Extracts X X X X
X X X X Extracts X X X X
....assessee on different issues were heard together are being disposed of by this consolidated order for the sake of convenience. 3. The assessee in ITA No. 2050/PN/2013 has raised the following grounds of appeal. 1. The learned CIT(A)-III, Pune erred in confirming disallowance of expenses of Rs. 1,84,000/- incurred for creating "canteen" by treating the expenditure as one leading to enduring benefit. The I-T authorities ought to have appreciated that the "canteen" structure was of a temporary nature and the said expenditure was in the revenue field, as such, deduction u/s 37 of ITA, 1961. 2. The appellant craves leave to addition / modify / amend / delete all / any of the grounds of appeal. 4. The brief facts relating to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee pointed out that the said expenditure was incurred on temporary structure constructed on the factory building and had no enduring benefit. 7. The learned Departmental Representative for the Revenue however, placed reliance on the order of CIT(A). 8. We have heard the rival contentions and perused the record. The issue arising in the present appeal is in relation to the expenditure of Rs. 1,84,000/- which the assessee claimed was revenue in nature. The assessee has furnished the copy of the said bill for the construction of temporary structure on the terrace of factory building for running a canteen. The copy of the said bill is placed at pages 1 to 3 of the Paper Book. The perusal of the said bill reflects the expenses being in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he learned CIT(A)-III and the learned AO erred in law and on facts in not appreciating that non-interest bearing own funds were used for acquisition of equity shares in sister concern, M/s SM Eberspaecher Exhaust Private Limited. 3. The learned CIT(A)-III and the learned AO erred in law and on facts in disallowing interest of Rs. 8,77,332/- without appreciating the commercial expediency in appellant's investments in the sister concern, M/s SM-Eberspaecher Exhaust Private Limited., a Joint Venture company between the appellant and a foreign company from Germany. Considering the principle of deep interest, the learned I-T authorities ought to have refrained from making interest disallowance. 4. The appellant craves leave to add....
X X X X Extracts X X X X
X X X X Extracts X X X X
....36(1)(iii) of the Act on proportionate basis at Rs. 8,77,332/-. The said disallowance made by the Assessing Officer was upheld by the CIT(A), against which the assessee is in appeal. 11. The learned Authorized Representative for the assessee pointed out that the assessee during the year had made investment in the Joint Venture Company. The initial contribution to the said Joint Venture Company was small however, because of expansion during the year, further sum of Rs. 50,00,000/- was advanced during the year. It was pointed out by the Assessing Officer that there is no merit in disallowance of any interest against the said investment as the said advances were made for commercial expediency as the products dealt in by both the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecord the JV agreement dated 23.01.1995 which was revised on 31.07.2008 at pages 56 to 101 of the Paper Book. 14. The second aspect raised by the assessee was that it had sufficient own funds which were more than the investments made by the assessee. Our attention was drawn to the copy of Balance Sheet as on 31.03.2007 placed at page 13 of the Paper Book wherein, it was pointed out that the assessee had sufficient reserves and surplus totaling Rs. 3,70,16,580/- and authorized capital of Rs. 5 crores against which the secured loan funds were Rs. 3.60 crores and unsecured loan of Rs. 84 lakhs. The assessee had shown investments of Rs. 1.52 crores in the year under consideration. The second plea in this regard raised ....