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2019 (1) TMI 931 - ITAT CHANDIGARHAddition u/s 36.(i)(iii) - assessee has diverted its interest bearing funds to the sister / associate concerns without any business consideration or commercial expediency - CIT(A) has deleted the addition - Held that:- No opportunity was given to the appellant in the course of assessment proceedings before making the disallowance on this issue. Further, I find that contentions of the appellant with regard to the availability of interest-free funds are correct as is seen from the financial statements that share capital including share premium of ₹ 82.50 crore was raised in the preceding year and interest-free loans and advances of ₹ 60.61 crore has been given to the related party in the current year. The appellant has explained that share capital and free reserves & surplus amounting to ₹ 109.19 crore were available as on 31/03/2012 and therefore, the question of transfer of interest bearing funds does not arise. We find that the decision of the Ld. CIT(A) is based on the relevant facts pertaining to the financial position of the assessee after duly analyzing the availability of own funds and taking into consideration the orders of the Tribunal, judgments of the jurisdictional High Court. Interfering or altering in the well reasoned order of the Ld. CIT(A) would only disturb the settled position of law in force and hence the order of the Ld. CIT(A) is hereby confirmed. - decided against revenue
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