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TMI Blog2012 (9) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... ot pointed out any factual error in the findings of CIT(A). The assessee has filed all these evidence before the AO. The AO in his order has in a very casual manner, without giving any reasons as to why the evidence furnished by the assessee was not acceptable, made the addition. Therefore, ITAT do not find any reason as to why the issue is to be set aside to the file of the AO. Appeal decides in favour of assessee Disallowance of interest expense - The bank granted overdraft facilities for business purposes – AO made addition on basis that assessee has surplus funds in the form of undistributed profits of the earlier year – Addition made on presumption that the surplus funds have to be held as used for giving money to directors/sister c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 58,26,886/- made by the AO on account of loss of derivatives. (b) Whether Ld. CIT(A) was correct on facts and circumstances if the cases and in law in deleting the addition of Rs.1,76,59,296/- made by the AO on account of unexplained credit balances. (c) Whether Ld. CIT (A) was correct on facts and circumstances of the case and in law in deleting the disallowance of Rs. 3,76,025/- made by the AO on account of interest on over draft limit. (d) The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of the hearing. 3. The learned department representative Sh. R.I.S Gill submitted that the assessing officer and the CIT (A) dealt with the first issue of loss on derivatives at page 8. He s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence there can be no question of disallowance on the ground that there is speculation loss. He submitted calculations and argued that the CIT (A) has verified the same. Alternatively, he submitted that the Tribunal in the case of G.K.Anand Bros.Buildwell (P) Ltd. vs . I.T.O. - (2009) 34 SOT 439 (Del), has held that the loss emanating from futures and options transactions is to be treated speculation loss from 1.4.2006. He also relied on the decision of Pradeep Kumar Harlaka Vs. ACIT reported in (2012) 65 DTR 157 /143 TTJ 446 (Mum.)(Trib.). 6. On ground No. 2 he strongly opposed the suggestion of the learned DR for setting aside of the matter to the AO, on the ground that the entire evidences were filed before the AO and the AO had in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his period. It was a case where the assessee received net gain from transactions in futures and options, done between 1.4.2005 to25.01.2006.This factual finding is not found fault with by the Ld. DR. AO has no basis for arriving at a derivative trading loss of Rs. 58,26,886/-. Thus, on facts we uphold the order the learned CIT(A) on this issue. Even otherwise the decisions in the case of G.K.ANAND BROS.BUILDWELL(P) LTD. vs. INCOME TAX OFFICER (2009) 34 SOT 439(Del) and Pradeep Kumar Harlaka Vs. ACIT(2012) 65 DTR 157/143TTJ 446 (Mum.)(Trib.) are in favour of the assessee. In the result ground No. 1 is dismissed. Ground No. 2 is against the deletion of an addition made on the ground that the assessee has unexplained cash credits. The deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and surplus profits of the current year Rs.18 lacs. Thus, the presumption is that the surplus funds have to be held as used for giving money to directors. This proposition is laid down by the Supreme Court in the case of Munjal Sales Corporation Vs. Commissioner of Income Tax and Another 298 ITR 298 (S.C). The Hon ble Bombay High Court has in the case of Reliance Utilities Limited 313 ITR 340 (Bombay) held that where the assessee has own funds as well as borrowed funds and it advanced funds to the sister concern for allegedly non business purposes, then a presumption can be made that the advances for non-business purposes have been made out of own funds. Hence we uphold the order on this issue and dismiss this ground of Revenue. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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