Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 90 - ITAT BANGALOREAddition of interest income - advances given - assessee has failed to prove commercial considerations involved in giving such advances - diversion of loan funds for giving impugned advances - lack of clarity - HELD THAT:- It is not a case of addition of Notional interest income. Before us, the assessee has not furnished the copies of financial statements and hence we are unable to appreciate the contention of the assessee. In addition to the above, the assessee has also furnished a copy of ledger account to submit that there are business dealings between the assessee and M/s TIPL. A perusal of the same would show that the assessee appears to have sold some properties to M/s TIPL and received money in installments, while the issue before us is with regard to the advances given by the assessee to M/s TIPL. In any case, this ledger account copy and the nature of business transactions have not been examined by CIT(A). There is lack of clarity on the facts surrounding the issue. The assessee claims that it has not diverted any loan funds for giving impugned advances and it has used only its rental income proceeds for giving the advances. However, CIT(A), after analyzing the financial statements of the assessee, has given a finding that the assessee does not possess interest free funds equivalent to or in excess of the advance given. A.R also submitted that the quantum of advance mentioned by the tax authorities is not correct. This issue requires fresh examination at the end of CIT(A) by providing one more opportunity to the assessee to substantiate its case. - Decided in favour of assessee for statistical purposes.
|