TaxTMI 
TaxTMI 
2025 (9) TMI 1126
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.... ld. AO of Rs.6,54,236/- on account of interest paid to bank. 2.1. The facts in brief are that during the assessment proceedings, the ld. AO found that assessee has taken loan of Rs.1.86 crores on which interest of Rs.18.17 lacks was paid. Since, the assessee paid Rs. 68.00 lacs advances to various concerns free of interest and therefore, accordingly, the ld. AO disallowed the interest attributable to advancing of interest free money to various concerns which comes to Rs.6,54,236/-. The ld. CIT (A) affirmed the order of the ld. AO in the appellate proceedings. 2.2. After hearing the rival contentions and perusing the materials available on record, we find that these advances were given for business purposes only and no div....
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....ed the TDS at source, the amount was liable to tax in terms of Section 40(a)(ia) of the Act and same was added to the income of the assessee. 3.2. In the appellate proceedings, the ld. CIT (A) affirmed the order of the ld. Assessing Officer. 3.3. After hearing the rival contentions and perusing the materials available on record, we find that since the recipient of the money is non-resident and having no PE in India and also no work was carried out in India. Besides, the payment was made in foreign currency. Then the provisions of Section 195 of the Act are not applicable and accordingly, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition. Ground no.2 is allowed. 4. The issue raised in gro....
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....relatives. 5.1. During the year the assessee paid commission to 4 relatives for rendering services in the business of the assessee. The ld. AO found that the payments were made to the related parties and accordingly, disallowed 50% of the said commission and added the same to the return income of the assessee. Similar commission was also paid in the immediately preceding assessment year which was also added by the ld. AO but allowed by the ld. CIT (A) by directing the ld. AO to delete the disallowance. Copy of the appellate order is available at page no.55 of the Paper Book. The ld. AO disallowed the said commission without making any comparative analysis as to unreasonableness of the amount paid. Therefore, the sum disallowed by t....
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.... year-to-year basis and were not even disallowed during scrutiny assessment in the preceding assessments. A sample copy of the assessment order is enclosed at page no.4 to 37 of the Paper Book. Accordingly, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition. Hence, ground no.5 is allowed. 7. Ground no. 6, is not pressed, hence, dismissed. 8. Ground No.7, is against the confirmation of disallowance as made by the ld. AO nearly 50% of the usage of gold in the manufacturing process amounting to Rs.24,67,500/- on estimated basis. 8.1. The facts in brief are brief are that during the assessment proceedings the ld. AO observed that the assessee has debited huge expenditure towards high value metal ch....