9911796707
TMI Blog2011 (4) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was in possession of 11,000 sq.ft. of office space with infrastructure and facility to accommodate 80 engineers - In such circumstances, the appellant should be definitely in a position to establish that it had utilized the premises by furnishing evidence for payment of electricity bill, etc. from its bank account - Find it just to grant one more opportunity to the appellant to produce the requisite evidence before the ld. CIT (A) - Thus, the case is remitted back to the file of the ld. CIT(A) for fresh consideration on merits - ITA No. 908/Bang/2010 - - - Dated:- 8-4-2011 - George George K, A. Mohan Alankamony, JJ. Jacinta Zimik Vashai, Addl. CIT(DR) for the Appellant V. Srinivasan, CA for the Respondent ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven to M/s. ASM Technologies Ltd. as security deposit to provide office space for its use. It was also noted by the ld. AO that the appellant had provided the bank with collateral security for the loan obtained by depositing the title deed of the office premises belonging to M/s. ASM Technologies Ltd.,(the premises occupied by the appellant in lieu of the loan extended). Ld. AO after a detailed examination arrived at a conclusion that the appellant did not have enough material to establish that it had utilized the loan for the purpose of its business and also could not furnish sufficient evidence to establish business expediency. 5. On the matter being brought before the ld. CIT(A), the ld. CIT(A) in para 4.3 and 4.3.1 of the order hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been able to utilize the good will and reputation of the appellant to get the loan (working capital) of Rs.3 crores. However, the appellant is trying to take advantage of the situation in the shape of reaping the benefit of deduction on account of interest payment to LKB because it has no other go but to follow the accepted accounting procedure because the loan is in its name. It is also stated to have the benefit of space of ASM utilisation of which resulted in 17 times enhancement of its turnover. Thus I find, even if the appellant has no stake nor any risk element in obtaining the loan from LKB, it is paying interest of Rs.18.36 lakhs per annum. The argument that the turnover is increased 17 times because such huge enhancement cannot sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed (a copy of which is also submitted before us in the paperbook) and the premises was given in possession to the appellant. The ld. AR argued that there was business expediency for both the parties concerned in the transaction on commercial terms. 7. The ld. DR vehemently argued against the submissions made by the ld. AR. She submitted before us that the transaction is not genuine. There were no proof that the appellant had occupied the space provided by M/s. ASM Technologies Ltd. The whole transaction was only an arrangement for convenience. She therefore prayed that the order of the ld. AO be upheld. 8. We have heard the rival submissions and perused the material on record. After analyzing the whole issue in dearth, we are of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
