2023 (6) TMI 1502

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....n behalf of the Respondent. ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the revenue against the order dated 26.10.2022 of the National Faceless Appeal Centre (hereinafter referred to as the 'CIT(A)') passed u/s 250 of the Income Tax Act (hereinafter referred to as the 'Act'). 2. The sole issue raised by the Revenue through its grounds of appeal is r....

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....oan and advances/investments were made for business purposes. However, the Assessing Officer did not agree with the aforesaid contention of the assessee and held that the said interest free advances were not incidental to the business activity of the assessee. He in this respect has relied upon the decision of this Tribunal dated 06.11.2015 passed in own case of the assessee for earlier assessment....

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....l for the assessee has invited our attention to the order of the Tribunal dated 06.11.2015 (supra) to submit that the Assessing Officer has wrongly noted that in earlier year, the Tribunal in similar facts and circumstances has confirmed the disallowance of proportionate interest expenditure in respect of interest free advances. He invited our attention to para 3 onwards of the order of the Tribun....

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....2013, however, the assessee had advanced interest bearing loan of Rs.47.09 crores to other parties and further the interest free share application money of Rs.4.27 crores was available with the assessee. He has demonstrated that the total interest bearing borrowings of the assessee were at Rs.34.34 crores, whereas, the total loans and advances including interest free advances and share application....